The Special Adviser to the President on Media and Public Communication, Sunday Dare, has defended the Federal Government’s proposed $20.5 billion and €1.9 billion external borrowing, saying the loans will fund security operations across the 36 states, support vulnerable Nigerians and address critical development needs.
Speaking exclusively on ARISE NEWS on Wednesday, Dare said governance must continue regardless of the proximity of elections, stressing that external borrowing was necessary to address funding gaps in critical sectors, including security, healthcare, education and social welfare.
“First, let’s state what is a global fact: governance in any country does not stop because an election is imminent. Governance is continuous. The activities and responsibilities of government, and the funding of critical sectors of the economy, do not come to a halt because an election is forthcoming. We need to establish that fact.
“Secondly, countries do borrow. When you borrow, there is no timeline within which or space within which you can borrow. You borrow based on what is required and needed to boost your policies and programs. Our case, this time around, is so different.
“This is a country of 230 million people. We have challenges on infrastructure, on healthcare, on education, etc., and we will need external borrowing to be able to do this.
“There is clarity in what went forward to the National Assembly. It will be used for security purposes across the 36 states, it will be used for vulnerable Nigerians, it will be used for human capital development,” he said.
Dismissing concerns over Nigeria’s rising debt burden and debt-service-to-revenue ratio, Dare insisted that the country was not facing a revenue crisis, citing tax reforms, increased refining capacity and gas infrastructure projects as measures to boost government revenue.
“Let me state clearly: there is no revenue crisis. We’ve seen this administration, under the present parliamentary unbundling, work to introduce a new regime of tax laws, which of course has increased our revenue. But we’ve also seen this administration work on increasing the refining capacity: we’ve moved from zero to 1.8, 1.7 million, 1.6 million, which also means more revenue coming to the government.
“Beyond that, we’ve also seen a diversification from oil and gas. So, we’re opening up different possible revenue lines.”
Addressing concerns over the impact of dollar-denominated loans on Nigeria’s debt obligations, Dare said the administration’s macroeconomic stabilisation measures had strengthened the country’s economic fundamentals, expressing optimism that they would eventually boost government revenue, improve the naira’s value and strengthen the economy.
“We must not forget the clear fact that when it comes to the dollar denomination, we must look at the fiscal recovery, the macroeconomic stabilization brought about by this government. These adjustments, of course, will have impacted the value of the naira, but also, they are fundamentals necessary for the growth that we expect in our revenue.
“The macroeconomic stabilization we enjoy has strengthened the structural fundamentals of our country. So, all of these blocks are necessary. These are the blocks that will eventually improve the value of the naira, increase our revenue, and strengthen the economy.”
Dare maintained that Nigeria was not experiencing a revenue crisis, citing economic growth projections, rising external reserves, increased allocations to states and ongoing infrastructure projects, while arguing that the country’s resources were insufficient to meet the needs of its 230 million population.
He also assured Nigerians that the Finance Minister would provide a detailed breakdown of the proposed loans, including their intended application, insisting that the government was accountable for how the borrowed funds would be spent.
“Nigeria is not in a revenue crisis. Will a country in a revenue crisis be onboarding 2,400 road infrastructure projects across the length and breadth of our country? Will a country in a revenue crisis have a GDP forecast of 4.43? Will a country in a revenue crisis be able to provide funding for sub-nationals, witnessing an increase of about 61% to the sub-nationals, generating enough fact to go to the sub-nationals?
“Will a country in a revenue crisis have an external reserve—gross external reserve—of about 57, 58 billion, and a net reserve of about 45 billion? Will a country in a revenue crisis be paying its public servants as and when due? Will a country in a revenue crisis run a credit core system benefiting a quarter to half a million people? Will a country in a revenue crisis be onboarding between 10 to 15 million people in the social investment program?
“If you look at the data for a country of 230 million, the budget we run currently for this year, when you do the math, is what should be for about 80 to 100 million people. So, we don’t have enough revenue, enough resources to fund the budget for 230 million population.
“Like I said—the government is accountable. It’s going to provide the account that is necessary to justify the windfall we’re receiving and where those headwinds are going. So, I’m saying we don’t have a revenue crisis.
“I think what you expect has been done so far. The details come up when the Minister of Finance and Coordinating Minister comes to bring down the details. But the clear nomenclature and the headlines—infrastructure, security, 36 states of the federation, social investment—those broad headlines are okay for now as it goes there. The Senate of course will open it up and bring down the details, and then the Finance Minister will come forward to provide justification and how these moneys will be applied. Nigerians deserve that, and I can assure you they will get that from this administration.”
Dare further defended the Tinubu administration’s borrowing record, citing improvements in power supply, military counter-insurgency operations, student loan support through NELFUND, mechanised agriculture and the timely payment of civil servants’ salaries as evidence that essential services remained functional.
“Whatever it is, we’ve seen an improvement, a massive improvement in power supply. It might not be across the length and breadth of our country, but in most parts, you can see gradual improvement in that. We’ve seen that our policing has not broken down in terms of security. That’s important. We’ve seen the efforts on the part of our military, you know, chasing the militants and the terrorists. We’ve seen counter-insurgency operations have been massively successful. We’ve seen support for our young people through NELFUND going on unabated.
“We’ve also seen an expansion of mechanized agriculture, and that’s what I’m talking about. We also see the fact that our civil servants are paid as and when due, the fact that they can draw credit for their houses, for their vehicles, for essentials—that’s what I’m talking about.
“When there is a state breakdown, the state is not able to meet the minimum responsibility. And I’m saying this government is meeting way above the minimum responsibility that a state should meet.”
On reducing the cost of governance, Dare said the government was reviewing the Oronsaye Report, restricting ministers’ convoys and tightening approval processes for official travels. He added that President Tinubu had directed the Finance Minister to conduct a forensic audit of federal agencies and parastatals to identify fake entities and those illegally drawing public funds.
“Te president has taken a look at the Orosanye report. The—the Idiagbe special advisor has taken a look at that. That of course has been submitted. But also, it needs to be updated because the Orosanye report data is about 10–12 years, and I think our process is ongoing. So, the government is looking at that.
“But also, you’ve seen some of the remedial efforts on the part of government, chilling the ministers to reduce their convoy. We’ve seen just about a month ago, travels of ministers is now subjected to two to three processes of verification that’s ongoing.
“We also have the president has said he’s going to audit—he has ordered the finance minister to bring forth expert forensic audit of federal government agencies and parastatals towards finding those that are fake and those that are drawing funds that are drawing funds illegally.
“This processes are ongoing as we speak, and I think ultimately it’s aimed at reducing the cost of governance.”
Favour Odima
Follow us on:
