LEADERSHIP of the All Progressives Congress, APC, in the South East has called on the Senate to rescind its rejection of the $29.680 billion loan planned for the three fiscal years of 20162018. According to a release from the publicity secretary, Hon. Hycienth Ngwu, “The rejection of the request by the Senate is ill-advised and an ill wind that blows no one any good.” The party posited that the only way out of the present biting economic recession was to embark on external borrowing which in the long run would bring Nigeria back to economic El Dorado.
“We believe the loan, which is within the acceptable Debt Management Office debt threshold of 19.39 percent for external debt/GDP ratio and far less below 56.0 percent debt threshold for external debt/GDP ratio by the World Bank’s, Country Policy and Institutional Assessment, CPIA, for countries in Nigeria’s peer-group, respectively, is sustainable in the mediumterm. “We also believe that the only quick way out of the present economic recession, which has thrown the masses into untold hardship and weakened all productive sectors of the economy, is by massive spending by the government. And with the fall in oil production and its price, the only rational way for government to raise enough fund to exit the economy from recession is through external borrowing which has the advantage of long maturity profile, very little interest rate and creates large space for domestic borrowing by the private sector participants,” the party pointed out. It added that “we strongly believe in the ability of the federal government to judiciously apply the loan in building the critical infrastructure as planned in order to quicken the diversification of the economy away from oil dependence. The diversification which will come with robust economic growth will substantially make our economy self-sustaining and pay back the loan effortlessly. “We are aware that some years back, the public sector debt in United Kingdom was over 200 percent of their GDP. But today, the growth in UK economy occasioned by the debt has helped to reduce the burden of debt. “We hereby appeal to the entire members of the National Assembly to put the nation and the masses first by rescinding their rejection of the loan plan by the Federal Government. In partnership devoid of party sentiments we shall make Nigeria great again,” it concluded.


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