Fayose Raises The Alarm Over Buhari’s China Trip To Borrow $2bn | Independent Newspapers Limited
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Fayose Raises The Alarm Over Buhari’s China Trip To Borrow $2bn

Posted: Apr 8, 2016 at 3:55 pm   /   by   /   comments (0)
Mr. Ayodele Fayose, Ekiti State Governor, has said that President Muhammadu 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 is an attempt to mortgage the future of Nigeria and its people.
Governor Fayose said the 2016 budget was not a reflection of the present economic reality in the country.
“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 per cent 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 Lere Olayinka, his Special Assistant on Public Communications and New Media, issued on Friday, 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 benchmark of $38 per barrel when the country’s budget was N4.5 trillion in 2015 when crude oil bench mark was $53 per barrel.”
The governor said that since the President Buhari 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.
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.