A map of Nigeria
The People’s Redemption Party in Abuja on Saturday disapproved of the federal government’s continued borrowing to finance state budgets.
The party’s national leader, Mr Falalu Bello, told journalists that it would be wrong for any nation that spends a larger percentage of its revenue on debt servicing to borrow more.
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“Anyone who does that is going to go bankrupt. This means that a country will have no way to finance growth and development of the economy with almost certain social malaise.
“Continuous borrowing in the face of declining revenues is wrong and amounts to a mortgage for the Nigerian future and bondage to the nation.
“The Nigerian government is currently facing many problems from both an economic and a social perspective.
“A persistent double-digit inflation rate, which is steadily lowering the purchasing power of the population, and a youth unemployment rate of 45 percent are ominous signs,” he said.
Falalu said to address the issues, the government should seek alternative means to generate more revenue.
The party leader suggested diversifying the economy through non-oil sources of income.