- Former vice president Atiku Abubakar has raised the alarm over rising profile of Nigeria's debt
- Abubakar alleged that the country would use N2.5 trillion to service debt in 2019
- The PDP's presidential candidate, however, warned the federal government against going into unsustainable debt
Atiku Abubakar, the former vice president of Nigeria, has declared that country would have spent N2.5 trillion on debt servicing by the end of 2019, a figure which he said is more than the country’s capital budget.
Leadership reports that Atiku, in a statement by his media aide, Paul Ibe, warned that the deeper the country goes into unsustainable debt, the more she loses its independence to her creditors.
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Legit.ng gathered that he called for immediate action to address Nigeria’s unsustainable debt burden as he said the National Economic Council (NEC) which he chaired in 2006 paid off the country's entire debt under the leadership of former president Olusegun Obasanjo.
“As if to vindicate the former vice president, the National Bureau of Statistics (NBS) has released Q1 statistics which revealed that in the first quarter of 2019 (January to March), General Buhari’s regime spent a whopping N610.2 billion on debt servicing for domestic debts. Note that these monies were spent on servicing (paying interest) debt, not in repaying debt.
“To put this in perspective, in the first three months of 2019, what Nigeria has spent on servicing domestic debts, so far, is more than the combined entire budget for education and youth development for the whole of 2019. How did this happen? How could an administration double our national debt from N12 trillion in 2015 to N24.9 trillion today and still have no tangible evidence of development to show for it," the statement read.
Atiku urged President Buhari-led government to make sacrifice for the future generation of the Nigeria's youth.
”We must not be a vampire generation that squanders the financial life blood of Nigeria and bequeath financial bondage to the next generation. For the avoidance of doubt, not long ago, Atiku Abubakar, had outlined a robust strategy for the funding of the country’s development needs without resort to indiscriminate borrowing,” he said.
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Meanwhile, Legit.ng had previously reported that Atiku warned the federal government against leaving huge debt profile for future generations while reacting to the announcement by the Debt Management Office (DMO) that Nigeria now owes N24.9 trillion.
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