PDP accuses Buhari of planning to borrow N5 billion daily in 2016

The opposition Peoples Democratic Party, PDP, has accused President Muhammadu Buhari of planning to borrow at least N5 billion per day to finance the N6.08 trillion 2016 budget.

The spokesperson of the party, Olisa Metuh, who spoke with reporters on Tuesday in Abuja, said a breakdown of the N1.84 trillion to be borrowed by Mr. Buhari to fund the budget shows that Nigeria would be borrowing N5 billion a day for the next 365 days, starting from January I, 2016, without corresponding provision for economic production and a clear repayment plan.

“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% 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 N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion every day for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?” Mr. Metuh said.

The PDP spokespersons said Mr. Buhari should explain to Nigerians how his government intends to pay back the loan.