The Deputy Speaker highlights that, at 63, Nigeria must not depend heavily on debt for its survival

Benjamin Kalu, the Deputy Speaker of the House of Representatives, has expressed his apprehension regarding Nigeria’s continued dependence on debt for its budget allocations and economic development.

At a stakeholders’ dialogue held in Lagos on Saturday to discuss the implementation of Section 45 of the Fiscal Responsibility Act, Kalu emphasized the necessity for Nigeria to achieve self-sufficiency and independence rather than relying on loans.

Kalu, represented by Mr. Nalaraba Abubakar, Chairman of the House Committee on Loans and Debt Management, pointed out that previous administrations resorted to loans to fund their budgets, a practice he deemed unsustainable.

“We encourage states to cease relying on the federal government and enhance their local production, thereby increasing internally generated revenue. I commend the Fiscal Responsibility Commission (FRC) for its role in promoting a transparent and accountable government fiscal management framework for Nigeria,” the deputy speaker stated.

However, he expressed his frustration with the authorities responsible for overseeing the influx of grants into the country, citing their inadequate record-keeping.

“These grants do not materialize out of thin air but involve processes in which commercial banks are engaged. It is essential for commercial banks to collaborate with the government by disclosing information about the inflow of grants,” he remarked.

Kalu confirmed that the 10th Assembly is prepared to introduce legislation aimed at improving transparency in the receipt of grants into the country.

He also mentioned their intentions to pass a law requiring commercial banks to disclose the sources of their grants, the recipients of these grants, and the entities responsible for safeguarding the funds.

These measures are intended to provide greater oversight and accountability in the management of grants in the country.

The lawmaker stated:

“We receive billions of dollars in grants coming into Nigeria, but we cannot ascertain where these grants are being directed within the economy. It is crucial for the commercial banks to collaborate with the government to rebuild the country because a thriving economy will also contribute to the banks’ activities.”