Some members of the House of Representatives on Wednesday expressed concern over the country’s rising debt portfolio, which stands at over N12.11 trillion or $63.81 billion, as of June 2015.
Of the amount, Federal Government was responsible for 82.98 percent while the 36 states and Federal Capital Territory (FCT) accounted for the balance of 17.02 percent.
Breakdown of the total debt stock comprises of $10.32 billion or N2.03 trillion external debt, while or $53.49 billion or N10.09 trillion was for domestic debt.
According to the MTEF proposal submitted to the House, the present administration proposed N1.2 trillion domestic debt and additional sum of N635.88 billion foreign debts.
Femi Gbajabiamila, majority leader, who led the debate on the 2016-2018 Medium Term Expenditure Framework (MTEF), reiterated the present administration’s resolve to diversify the economy.
The MTEF captures President Muhammadu Buhari’s administration efforts toward improving revenue collection from non-oil sector in the face of the dwindling oil price, Gbajabiamila explained.
The lawmaker, who called for speedy consideration and passage of the document, noted that the submission of the MTEF was in line with Section 11(3) of the Fiscal Responsibility Act, 2011.
Opposition lawmakers, including Leo Ogor, minority leader, and Ossai Nicholas, who spoke during the debate on the 2016-2018 MTEF, stressed the need for Buhari’s administration to be proactive in the implementation of the budget.
Ogor argued that the configuration of the document did not take into account the actual projected accruable income and expenditure for the federation expected in 2016 and beyond, especially the issue of subsidy that would have given insight into how much would be available to be shared among the three tiers of government.
Ogor also questioned the rationale behind such an omission and called for the withdrawal of MTEF with a view to come up with a more comprehensive analysis of income and expenditure envisaged in the fiscal years under consideration.
Also speaking, Ossai urged the House to put necessary machinery in place to ensure effective oversight of ministries, departments and agencies (MDAs) with the view to ensure compliance with the FRA.
He also urged the joint committee on Appropriation, Finance and Aids, Debts and Loans to do justice to the document.
Sadiq Buba noted that the budget as encapsulated in the MTEF, when passed into law, would provide opportunity to improve micro-economy and drive revenue from non-oil sector.
Buba, who applauded the provision of N500 billion set aside for social welfare programme, noted that the scheme would directly impact on the lives of the poor within the society.
While ruling, Speaker Yakubu Dogara explained that the joint committee was expected to submit its report to the House by next Tuesday.
He subsequently referred the document to the joint committee on Appropriation, Finance and Aids, Debts and Loans for further legislative input.
