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Buhari ‘President planning to borrow N5bn daily,’ PDP says

The PDP also said that Buhari’s plan would turn Nigeria into a debtor nation like Greece.

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The Peoples Democratic Party (PDP) has said that President Muhammadu Buhari’s 2016 budget indicates that he plans to borrow N5bn per day.

The PDP also said that Buhari’s plan would turn Nigeria into a debtor nation like Greece.

The comments were made by PDP National Publicity Secretary, Olisa Metuh during an interview with journalists in Abuja on Tuesday, December 29, 2015.

Metuh said:

“Some people may be wondering why we raised an alarm about the budget. The reason is simple. When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.

“By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84tn borrowing, you discover that it amounts to borrowing N5bn everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5bn per day and how do they intend to pay back?

“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests? And does he intend to accumulate a colossal debt for future generations of Nigerians? The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84tn without specific projects and precise repayment outline.

“They are driving us to be like Greece, and to plunge us into an unnecessary debt. When the PDP took office in 1999, we achieved the cancellation of inherited debts. This administration, in seeking to accumulate debts, should know that there is no possibility that any country in the world will give us debt cancellation anymore,” he said.

Buhari presented the proposed budget to the National Assembly on Tuesday, December 22.

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