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A civil society organization, CSO, Centre for Social Justice, Equity, and Transparency, CESJET, has backed President Bola Tinubu\u2019s request to borrow $2.2 billion to fund capital projects.<\/p>\n

DAILY POST reports that the Senate on Thursday approved Tinubu\u2019s request for a fresh $2.2 billion to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.<\/p>\n

In the request letter sent to the National Assembly, Tinubu had explained that the loan was integral to his administration\u2019s fiscal strategy for the coming year.<\/p>\n

The loan request attracted criticism from several quarters, with some Nigerians urging the National Assembly to reject the loan.<\/p>\n

Speaking on the President\u2019s loan request during a press briefing in Abuja on Thursday, CESJET said the funds are essential to the advancement of revenue-generating plans and institutional improvements.<\/p>\n

The Convener of CESJET, Emeka Theodore, who addressed journalists, faulted calls for the rejection of the loan by the National Assembly.<\/p>\n

According to him, the calls for the rejection of the loan are not based on national interest.<\/p>\n

\u201cWe are gathered here today, to discuss a matter of vital importance to the development and prosperity of our country: the Federal Government\u2019s planned loan request of $2.2 billion. This initiative has seen a lot of pushback in recent weeks, most of it being misguided and uninformed.<\/p>\n

\u201cEvidently, it is important to understand that the oppositions to the borrowing plan is obviously unwarranted and counterproductive to Nigeria\u2019s development.<\/p>\n

\u201cIn setting the record straight, it requires us to address the baseless complaints made of this loan while emphasizing its benefits and justification it would do to our great country,\u201d Theodore said.<\/p>\n

Justifying the $2.2 billion loan, CESJET noted that Nigeria is one of the few countries that have continuously fulfilled its financial commitments to foreign creditors.<\/p>\n

\u201cThrough a strategic and structural plan in executing loan servicing, the President Tinubu led-administration has maintained repayment schedules and built confidence with foreign lenders.<\/p>\n

\u201cFor example, income generating reforms have been used to carefully control the 2023 debt service-to-revenue ratio, despite the fact that it is still worrisome.<\/p>\n

\u201cIt is noteworthy stating that fulfilling these responsibilities has not only maintained Nigeria\u2019s reputation, but it has also increased foreign financial institutions\u2019 trust in our capacity to carefully manage borrowed money. Nigeria continues to benefit from favorable rates on development funding and concessional loans because of this confidence.\u201d<\/p>\n

CESJET reminded critics of the loan that loans collected by government in the past have been used for important development initiatives, infrastructure growth, and institutional changes.<\/p>\n

The civil society organization further noted that the judicious use of loans to promote economic growth and address infrastructure deficiencies is demonstrated in projects like the Second Niger Bridge, the Lagos-Ibadan railway, and the ongoing Mambilla Hydropower Project.<\/p>\n

\u201cThis proposed $2.2 billion loan is not unusual; its goal is to fund vital industries that would help Nigerians in the long run.<\/p>\n

\u201cIn dispelling the myth on the borrowing-to-federal budget ratio, we wish to state categorically that, Nigeria\u2019s borrowing plans are clearly in line with international best practices and do not impose an excessive cost.<\/p>\n

\u201cFor example, a fiscal deficit of about N8 trillion is expected in the 2025 budget, which is estimated to be around N34 trillion. A manageable portion of current budget, the $2.2 billion loan fits the government\u2019s fiscal policy to strike a balance between development requirements and long-term financial viability.<\/p>\n

\u201cComparatively, the International Monetary Fund (IMF) recommends that developing economies have a debt-to-GDP ratio of not more than 55%. Nigeria\u2019s debt ratio of about 35% puts the country in a better situation than that of other African peers, such as Ghana and Kenya, whose debt ratios are more than 60%. Nigeria has the financial capacity to borrow responsibly, as these numbers demonstrate.<\/p>\n

\u201cHowever, some critics have attempted to sabotage this important project. It is depressing to observe that their ideas frequently lack basic economic reasoning and instead rely on populist hyperbole. To propagate false information, some organizations have been enlisted to paint Nigeria\u2019s borrowing as irresponsible and unsustainable.<\/p>\n

\u201cThese organizations lack a thorough grasp of the economic forces at work and are frequently supported by anti-progress elements. Opposing politicians should give up their populist stance and accept the realities of government for the benefit of the country.<\/p>\n

\u201cIt will be in the good interest of the nation for opposing lawmakers to abandon their populist approach and embrace the realities of governance. Clearly, their opposition runs the risk of sabotaging Nigeria\u2019s growth, delaying the country\u2019s advancement and leaving important projects underfunded.\u201d<\/p>\n

Urging Nigerians to support the Tinubu administration, CESJET added, \u201cEvidently, public support is crucial for the successful implementation of development projects.<\/p>\n

\u201cThe $2.2 billion loan proposal is clearly a necessity for Nigeria\u2019s progress. Rejecting this proposal would be self-defeating, compromising current initiatives and endangering the future of the country.<\/p>\n

\u201cIn light of this, we urge National Assembly members to put the interests of the country above populist digressions. A better future for all Nigerians is at stake when the loan is approved; it is not just an economic choice, but a mission to save generations.\u201d<\/p>\n

\u2018Necessity for Nigeria\u2019s progress\u2019 \u2013 CESJET backs Tinubu\u2019s $2.2bn loan request<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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