Civil Society Legislative Advocacy Centre (CISLAC) has raised concerns over the Federal Government’s borrowing of $800 million from the World Bank to cushion the impact of the proposed fuel subsidy removal in June.
The group criticized the government’s decision to borrow funds to finance post-subsidy removal palliatives and questioned the need for such a loan if the subsidy removal process had been suspended, as announced by the Minister of Finance after the NEC meeting in April.
The Executive Director of CISLAC, Auwal Musa-Rafsanjani, condemned what he described as the government’s casual approach to the nation’s financial crisis, pointing out that Nigeria’s revenue collection for 2022 was N10 trillion with a debt of N77 trillion.
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Rafsanjani also criticized the government’s reckless spending during the end of the Buhari administration, which he said was unnecessary and a clear indication of the diversion of public funds for personal interests.
He noted that in 2022, Nigeria paid about N7 trillion in fuel subsidies, and in 2023, from January to June when the country intends to stop paying the subsidy, it is N3.6 trillion.
Therefore, Rafsanjani suggested that instead of borrowing more money, the subsidy funds could be used for post-subsidy removal, and the government should cut waste.
CISLAC boss also called on financial watchdogs to examine all public spending that has not followed the appropriate procurement process.
He expressed his concerns about the need for the government to acquire fighter trucks towards the end of an administration that has held the position for over eight years, which he described as a clear indication of contract scams that do not follow due process and public interest.
He added that Nigeria was already in another debt trap, and records from both national and international financial and debt institutions regarding Nigeria’s debt reveal a state in crisis.
AGS NEWS 