Fayose raises alarm over Buhari’s China trip to borrow $2bn

Ekiti State Governor, Mr Ayodele Fayose has raised the alarm over

President Mohammadu Buhari’s scheduled trip to China to borrow $2

billion as part of the N1.84 trillion programmed to be borrowed to

finance the 2016 Budget, describing the move as an attempt to mortgage

the future of Nigeria and its people.

The governor, who said the 2016 budget was not a reflection of the

present economic reality in the country, added that; “By the time they

borrow N1.84 trillion to fund their N6.06 billion budget; I wonder how

Nigeria will survive in 2017 when the Federal Government will be

servicing debt with about 50 percent of its budget.”

It has been widely reported that Nigeria wants to raise about $5

billion abroad to cover part of its 2016 budget deficit. This was said

to be projected to hit N3 trillion ($15 billion) due to heavy

infrastructure spending at a time when the slump in global oil prices

has slashed its export revenues.

In a release issued on Friday by his Special Assistant on Public

Communications and New Media, Lere Olayinka, Governor Fayose said; “In

elementary economics, you don’t propose to spend more when your income

reduces and I still can’t understand this Buharinomics in which

Nigeria is going to spend N6.06 billion with crude oil bench mark of

$38 per barrel when the country budget was N4.5 trillion in 2015 when

crude oil bench mark was $53 per barrel.

He said since the President claimed to have recovered and still

recovering trillions of Naira looted from the treasury and over N3

trillion saved from the Treasury Single Account (TSA), the 2016 budget

should be funded with the recovered fund.

The governor said he was alerting Nigerians of the danger in the

federal government plan to fund the 2016 budget with loan, adding

that; “Tomorrow, it will be said of me that I did not keep silent when

Nigeria was being mortgaged to unnecessary debt.

He warned that with the proposed N1.84 trillion borrowing, $2 billion

of which President Buhari is already going to borrow in China, the

nation may soon be going the way of Greece because Nigeria will be

borrowing N5 billion per day for the next 365 days.

“If your income was N200, 000 per month last year and your expenditure

was N195, 000 per month; does it make any economic sense for you to

propose to spend N300, 000 per month this year that your income has

reduced to N120, 000?

“Only President Buhari can explain to Nigerians what manner of

Economic theory encourages borrowing of N1.84 trillion to fund a N6

trillion budget. As for me, it is nothing but a voodoo economic theory

and Nigerians must take note that the income that should accrue to

them in five years’ time is about to be spent in one year by the

Buhari’s APC government,” the governor said.