Ado Ekiti — Ekiti State Governor, Mr Ayodele Fayose has described as unnecessary the reported plan of the federal government to borrow $2 billion from China to finance the N1.84 trillion deficit in the 2016 budget.
Rather, Fayose said President Mohammadu Buhari should finance the budget with the recovered loot from corrupt politicians and money saved from the Treasury Single Account (TSA),
He said the move was an attempt to mortgage the future of Nigeria and its people and put the country into unnecessary debt.
Fayose, who said the 2016 budget was not a reflection of the present economic reality in the country, added that the proposed loan if obtained would further aggravate the suffering of the masses in 2017 when the Federal Government will be servicing debt with about 50 percent of its budget.
In a statement by Special Assistant on Public Communications and New Media, to the governor, Lere Olayinka on Friday, the governor said, “In elementary economics, you don’t propose to spend more when your income reduces, and I still can’t understand this Buharinomics in which Nigeria is going to spend N6.06 billion with crude oil bench mark of $38 per barrel when the country budget was N4.5 trillion in 2015 when crude oil bench mark was $53 per barrel.”
He warned that with the proposed N1.84 trillion borrowing, $2 billion of which President Buhari is already going to borrow in China, the nation may soon be going the way of Greece because Nigeria will be borrowing N5 billion per day for the next 365 days.
“If your income was N200, 000 per month last year and your expenditure was N195, 000 per month; does it make any economic sense for you to propose to spend N300, 000 per month this year that your income has reduced to N120, 000?
“Only President Buhari can explain to Nigerians what manner of Economic theory encourages borrowing of N1.84 trillion to fund a N6 trillion budget. As for me, it is nothing but a voodoo economic theory, and Nigerians must take note that the income that should accrue to them in five years’ time is about to be spent in one year by the Buhari’s APC government.”