{"id":292489,"date":"2023-10-08T08:12:14","date_gmt":"2023-10-08T07:12:14","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=292489"},"modified":"2023-10-08T08:12:14","modified_gmt":"2023-10-08T07:12:14","slug":"nigeria-cant-be-surviving-on-debt-at-63-years-of-independence-kalu","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2023\/10\/08\/nigeria-cant-be-surviving-on-debt-at-63-years-of-independence-kalu\/","title":{"rendered":"Nigeria can\u2019t be surviving on debt at 63 years of Independence \u2013 Kalu"},"content":{"rendered":"<ul>\n<li><strong>Says past governments sustained budgets through loans but an approach he considered not sustainable<\/strong><\/li>\n<li><strong>He expressed his disappointment that state governments were borrowing for consumption rather than focusing on long-term capital expenditure for production purposes<\/strong><\/li>\n<\/ul>\n<p>Benjamin Kalu, the Deputy Speaker of the House of Representatives has expressed concern about Nigeria\u2019s reliance on debt.<\/p>\n<p>Speaking at a stakeholders\u2019 dialogue on the implementation of Section 45 of the Fiscal Responsibility Act, on Saturday in Lagos, Kalu said Nigeria needs to be self-sufficient and independent instead of relying on <a href=\"https:\/\/www.withinnigeria.com\/news\/2023\/09\/11\/nigerian-govt-obtains-163m-loan-from-afdb-for-wheat-production\/\" target=\"_blank\" rel=\"noopener\">loans<\/a>.<\/p>\n<p>Kalu, represented by Mr Nalaraba Abubakar, Chairman, House Committee on Loans and Debt Management, said past governments sustained budgets through loans but an approach he considered not sustainable, NAN reports.<\/p>\n<p>He also said that the compliance of the provisions of Section 45 of the FRA remains crucial to the banks and other financial institutions before lending to any government of the federation.<\/p>\n<p>\u201cLending by banks and financial institutions is a contravention to the FRA 2007 is unlawful,\u201d the lawmaker said.<\/p>\n<p>Kalu said it was imperative for banks and financial institutions to comply with the provisions outlined in Section 45 of the Fiscal Responsibility Act before they lend to the government.<\/p>\n<p>The deputy speaker noted that it was essential to consider the authorised borrowing limit specified in the appropriation Act and adhere to the extant provisions of Section 45.<\/p>\n<p>He expressed his disappointment that state governments were borrowing for consumption rather than focusing on long-term capital expenditure for production purposes.<\/p>\n<p>According to him, the trend worsens the country\u2019s inflation and inhibits economic growth.<\/p>\n<p>He urged state governments to explore their own potentials and enhance local production to increase internally generated revenue instead of relying solely on the Federal Government.<\/p>\n<p>\u201cWe encourage states to stop depending on the federal government and boost their local production, thereby increasing internally generated revenue.<\/p>\n<p>\u201cI commend FRC in its responsibility of keeping up with promoting a transparent and accountable government fiscal management framework for Nigeria,\u201d Kalu said.<\/p>\n<p>Kalu, however, expressed disappointment that the authorities in charge of monitoring inflow of grants into the country had no proper record of the grants.<\/p>\n<p>\u201cThese grants do not just pass through the thin air, but by processes, which the commercial banks are involved in.<\/p>\n<p>\u201cIt is important for commercial banks to liaise with the government by making disclosure on the inflow of the grants,\u201d he said.<\/p>\n<p>According to him, accumulation of those aids and grants are crippling the economy, which has become unbearable.<\/p>\n<p>Kalu said: \u201cWe have billions of dollars coming into Nigeria as grants, but cannot pinpoint where the grants are going into the economy.<\/p>\n<p>\u201cSo, it\u2019s important that the commercial work together with the government to rebuild the country, because a buoyant economy would also contribute to the activities of the banks too.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Says past governments sustained budgets through loans but an approach he considered not sustainable He expressed his disappointment that state governments were borrowing for consumption rather than focusing on long-term capital expenditure for production purposes Benjamin Kalu, the Deputy Speaker of the House of Representatives has expressed concern about Nigeria\u2019s reliance on debt. Speaking at [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":267602,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[595,2619,3439,10955],"class_list":["post-292489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-debt","tag-independence","tag-kalu","tag-loans"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Nigeria can\u2019t be 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