Dep Speaker Kalu Complaints That, At 63, Nigeria Cannot Rely Solely On Loans

Deputy Speaker of the House of Representatives, Benjamin Kalu, has emphasized the need for Nigeria, as it celebrates 63 years of independence, to strive for true self-sufficiency rather than relying heavily on loans.

Speaking at a stakeholders' dialogue on the implementation of Section 45 of the Fiscal Responsibility Act (FRA) in Lagos, Kalu expressed concern over the practice of previous governments sustaining budgets through loans, which he deemed unsustainable.

Kalu, who was represented by Mr. Nalaraba Abubakar, Chairman of the House Committee on Loans and Debt Management, highlighted the importance of compliance with the provisions of Section 45 of the FRA by banks and financial institutions before lending to any government in the federation.

He stressed that lending to governments in violation of the FRA was unlawful and called for strict adherence to authorized borrowing limits specified in the appropriation Act and existing provisions of Section 45.

Kalu also criticized the trend of state governments borrowing for consumption rather than focusing on long-term capital expenditure for productive purposes, which he argued contributes to inflation and hampers economic growth. 

He encouraged states to harness their potentials and promote local production to boost internally generated revenue instead of solely relying on the Federal Government.

Additionally, Kalu expressed concern about the lack of proper records for grants entering the country and the impact of the accumulation of these grants on the economy. 

He revealed plans to introduce legislation in the 10th Assembly to bring transparency to the process of grants entering the country, including requiring commercial banks to disclose grant sources, beneficiaries, and fund custody.

The aim is to ensure that grants contribute positively to the economy and promote transparency in financial processes.