ACN's Statement On Nigeria's Debt Hypocritical - PDP

Source: thewillnigeria.com
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OLISA METUH, PDP NATIONAL PUBLICITY SECRETARY

ABUJA, April 30, (THEWILL) - The Peoples Democratic Party (PDP) has responded to claims by the Action Congress of Nigeria (ACN) that its government has been dragging the country back into debts.

In a statement signed by Olisa Metuh, its national publicity secretary, PDP apart from refuting ACN’s claims on the country’s debt profile, accused the opposition party of hypocrisy, citing the case of ACN-controlled Lagos, which is the country’s most indebted state.

The full statement reads:
Firstly, Nigeria is still one of the least indebted countries among comparative growing economies with a debt/GDP ratio of 17.45 per cent as at 2011, compared with countries such as Indonesia at 24.5 per cent, South Africa at 35.6 per cent and Ghana at 38.7 per cent.

Secondly, the approved external borrowing of $7.9bn dollars in the 2012 budget covers expenditure over a three-year period ending in 2014, and it will be applied to specific projects including the Abuja Light Rail project, Zungeru 700 MW Hydro Electric Power project, 200 Ultra Modern Bed Hospital in Yobe state and Erosion Watershed Management projects across the country amongst others, which will enhance job creation, alleviate poverty and provide macroeconomic stability.

It is common practice even in the most advanced economies in the world to borrow funds to supplement the income they generate for development projects. That Nigeria is found worthy of such credit facilities shows the improved credit rating of the country that was non-existent only a few years ago.

It is deceitful for the ACN to question our debt profile when Lagos state is the most indebted state with an international debt profile of $491,847,295.53. This constitutes approximately 9% per cent of the country’s total external debt profile. In addition, Lagos state also has an internal debt of N100 billion in bonds.

It is, therefore, hypocritical of the ACN to continuously accuse the PDP-led government of sinking the country into further debt when their government is, in fact, the worst culprit. The PDP government will not be distracted from its focus in ensuring fiscal discipline and prudent management of our debt profile, which is currently maintained within the sustainable international standard threshold of 40 per cent.

Finally, we advise the ACN to desist from reckless and irritating attempts at misinformation, as their thoughtless statements are a further indication of their total ignorance on matters affecting our economy.