Coalition urges FG to borrow for productive investments

Emma Ujah, Abuja Bureau Chief
The Economic and Fiscal Justice Coalition (EFJC) has tasked the Federal Government to adopt a “Borrow Better” framework by ensuring it borrows only for productive assets and not for recurrent consumption.

This was contained in a position paper presented to the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, in Abuja on Wednesday, a copy of which was sent to Vanguard today.

The coalition, in the position paper presented by the Executive Director, Mr. Eze Onyekpere, Esq., urged the government to “borrow only for productive investments, having done proper and published cost-benefit analyses for all major loans; with popular participation that guarantees transparency in all facets of debt management, in accordance with the Fiscal Responsibility Act.

“Prioritise concessional financing and establish measurable development outcomes for every borrowed naira.”

The coalition acknowledged that public borrowing was not inherently problematic, noting that “every modern economy borrows.”

It added, however, that: “The fundamental questions are: What are we borrowing for? Are borrowed resources financing productive investments? Are those investments generating sufficient economic returns? Can future revenues comfortably service those debts?”

The civil society organisation also urged the government to “establish measurable development outcomes for every borrowed naira.”

The coalition further suggested that the government should prioritise domestic resource mobilisation over additional borrowing, particularly given the current challenge of high debt-servicing obligations.

To achieve this, the EFJC urged the current administration to close revenue leakages across Ministries, Departments and Agencies (MDAs), digitise and automate revenue administration, “ensuring that taxes are swept in real time into the public treasury,” while integrating national identity systems to reduce tax evasion.

The organisation also urged the government to rationalise tax expenditures and unnecessary waivers.
While acknowledging the progress made in macroeconomic indicators following various reforms, the EFJC noted that more Nigerians were sinking into poverty.

The group said: “While macroeconomic indicators are improving, the everyday reality for millions of Nigerians remains profoundly difficult.

“For the average Nigerian family, economic reforms are not judged by exchange-rate movements, sovereign credit ratings or fiscal balances.

“They are judged by whether food is affordable, whether transport costs have fallen, whether decent jobs are available, whether children can remain in school, whether small businesses can survive, and whether hope for a better future has returned.

“This divergence between improving macroeconomic indicators and deteriorating household welfare is perhaps Nigeria’s greatest economic policy challenge today.”

The organisation said the success of Nigeria’s economic reforms should ultimately be measured not only by stronger macroeconomic indicators but by whether they reduce poverty, create decent jobs, improve public services, strengthen citizens’ resilience and expand opportunities for all Nigerians.

63% of Nigerians multidimensionally poor

“The National Bureau of Statistics reported that approximately 63 per cent of Nigerians are multidimensionally poor, representing one of the largest populations living in poverty anywhere in the world.

“Poverty in Nigeria is no longer merely an income problem. It reflects deprivation in education, healthcare, sanitation, nutrition, housing, employment opportunities and living standards.”

Poverty now a security issue

“The burden falls disproportionately on children, women, rural communities, persons living with disabilities, informal workers and unemployed youth. This reality should concern all of us because poverty is no longer only a social issue; it has become an economic constraint and a national security challenge.

“A nation cannot sustainably grow when a significant proportion of its citizens lack the capabilities necessary to participate productively in the economy,” the coalition said.

The organization also urged President Bola Tinubu to give his assent to the to the Federal Audit Service Bill in the pursuit of transparency and accountability by the administration.

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