National Association of Seadogs (Pyrates Confraternity) has advised the Federal Government to apply the brakes on external borrowings as they can affect the economy.
In a statement, the group’s Capn, Dr Joseph Oteri and Second Mate, Chief Bart Akelemor, said President Bola Tinubu’s latest $2.209 billion external borrowing request to partly finance 2024 budget deficit of N9.179 trillion, was disturbing.
The group blamed the Federal Government for relying solely on crude exports as its source of revenue.
The President had hinged his request for the loan on execution of projects and programmes in the budget.
They argued, citing Debt Management Office (DMO) Act of 2003, that to explore Eurobounds, Sovereign Sukuk, and syndicated loans to secure the funds is not good.
Tinubu recently reported that Nigeria’s debt service-to-revenue ratio decreased from about 97 to 65 per cent since May, last year.
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The association, however, noted that Nigeria remains plagued by the administration’s incorrigible borrowing habits.
The statement reads: “As of June, DMO reported that Nigeria’s public debt had hit N134.3 trillion, putting the country at a debt per capita of N619,501 for 216.7 million Nigerians.
“In three months (March- June), Nigeria’s debt profile rose by N12.6 trillion.This rise is partly due to recurrent budget deficits, borrowing to fund infrastructure and an over reliance on external loans.
“The long-term fiscal risks of such venture are not limited to debt servicing costs, exchange rate pressure, and reduced budgetary autonomy. They outweigh benefits peddled by proponents of this administration’s incorrigible borrowing habit.
“Nigeria has a debt service-to-revenue ratio of 60 per cent. The implication is there must be more room for projects. The future is bleak for Nigeria’s fiscal sustainability, with projections of 26.7 per cent rise in debt servicing costs from 2025 to 2027.
“It is disheartening to learn these debts are incurred to feed recurrent expenditure and the lavish lifestyles of politicians.
“The President’s promise to cut down on cost of governance has been abandoned. This evokes the unfortunate picture of politicians feeding fat on misfortunes of citizens.”
The association urged the government to stop further borrowing plans to fund its expenditure.
The group said: “We reject the Federal Government’s inability to cut down the cost of governance drastically. We ask the people’s representatives to lead by example by taking pay cuts, minimising travels, and driving the cost of governance downward.”
The group urged the government to seek ways of improving Nigerians’ earning potential.
“Efforts should be targeted at how the average Nigerian can be more productive, not how the government can lounge in largesse,” it added.