‘Fresh $1.2b loan will plunge Nigeria’s economy into devastating pitfall’, PDP cautions Nigerian govt
The Peoples Democratic Party (PDP) on Wednesday expressed concern over fresh plans by the Federal Government to secure an additional $1.2 billion loan from the Brazilian government.
The party, in a statement issued by its National Publicity Secretary, Kola Ologbondiyan, said it was worrisome that the government planned to take another loan despite public outcry against the accumulation of loans from China and other foreign interests.
The federal government said it was seeking approval from the National Assembly for $1.2 billion loan to address issues in the agriculture value chain.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this on Tuesday when she appeared before the House of Representative Committee on Finance to defend the ministry’s 2021 budget.
Ologbondiyan said the loan would plunge the nation’s economy into a “devastating pitfall.”
He knocked the federal government for using agricultural programmes as a justification for accumulation of foreign loans without clear terms and conditions.
The PDP spokesman said: “The loan request, if approved by the National Assembly, will exacerbate our nation’s debt burden, mortgage our agricultural sector, weaken our investment capacity and worsen our food security challenge.
“Our party invites Nigerians to note that with the $1.2 billion (N459 billion) Brazilian loan, in addition to the N5.20 trillion borrowing already proposed in 2021 budget, our nation’s debt burden will hit N36.2 trillion.
“This will plunge our economy into a devastating pitfall.”