Nigerian government under the leadership of president Muhammadu Buhari has been trying to see that the country survives challenges posed by the country’ s unstable economic situation. There has been economic challenges facing the country since president Muhammadu Buhari came into power in 2015.
Recall that when president Muhammadu Buhari came into power, it was said that the national Treasury was empty and the country was thrown into recession. Prices of goods started going high and many Nigerians couldn’ t survive it. staple food items began to rise up beyond expectations of Nigerians. People started finding life so difficult and some people even died of hunger and starvation.
Meanwhile, in order to see that Nigeria bounce back from Economic instability, the president of Nigeria started embarking on policies that could help to stabilize the economic situation in the country. That led president Muhammadu Buhari to pass the policy of banning the importation of some goods that Nigeria may have comparative advantage upon. The important of rice was banned in order to pave the way for our own local production. Nigeria has comparative advantage on the production of rice over other countries in West Africa and even other countries around the world.
As the president saw that all this was not working well, he decided to support the farmers and other production sectors to boost the economy. He launched programmes of empowerment through which soft loans can be given to manufacturing sectors and farmers. Loans were given to them to support production.
The Federal Government also had to build Infrastructural facilities needed to stabilize the economy and the government started facing shortage of funds. Therefore, it has to embark on requesting loans from Interconttional community. As we speak today, Nigeria has received much loans from China in the name of building infrastructural facilities to boost the Nigerian economy.
However, the President of the Senate, Ahmad Lawan, has said that the upper chamber will work with revenue- generating agencies towards reducing the level of the nation’ s borrowing.
Mr Lawan made this known on Wednesday in Abuja, at an event to mark his 63rd birthday. Many Nigerians have, in recent times, criticised the Buhari administration for frequently taking loans. They also condemned the National Assembly for approving the loan requests.
He said that the Senate would support and supervise the agencies and keep them on their toes ” for us to have more revenues, in order to reduce the level of borrowing. “
” The upper chamber, in the first quarter of this year, will focus on addressing the challenges of revenue generation, collection and remittance to shore up earnings by the federal government.
” An improvement to the country’ s revenue figures will reduce Nigeria’ s dependence on external borrowings for the execution of capital projects captured in the national budget. ” We still have a huge responsibility, and in fact, it is something that we wanted to do last year, but because of the COVID- 19 pandemic, we couldn’ t do so.
” This year, by the grace of God, we are going to resuscitate that plan and it is to keep and maintain focus on revenue generation, collection and remittance.
” Our revenue to GDP ratio is very low and the economists will tell you Nigeria’ s problem is not debt, but revenue.
” So, if that is the case, it means those of us in government must focus on dealing with the challenges of revenue generation, revenue collection and remittance.
” Nobody likes taking loans, borrowing or accumulating debts, whether as an individual, a family, a community or as a country.
” But what can you do when you’ re not able to generate enough? We are as concerned as anybody else about our level of borrowing, even though we have not saturated, but if we can do better why not reduce, and the best way to reduce is to get more revenues from especially independent sources.