Civil society organisations are urging for an urgent activation of the fiscal responsibility act 2007 to provide the parameter to check and control the debt stockpile of all tiers of government and ultimately avert a national public debt crises of bankruptcy proportions.
This urgent request formed the crux of a one day policy dialogue on the modality for setting a debt limit, organized by civil society groups in Abuja.
Nigeria’s rising debt stock is increasingly becoming a grave cause for concern for most informed Nigerians including civil society organisations.
Nigeria’s total debt stock is projected to stand at about fifty trillion Naira after the submission of a detailed budget by the minister of finance.
It is particularly worrying at a time the nation’s debt service cost presently outweighs its revenue with clear signs of economic dangers
They believe it is important to set some realistic limits for government to prevent reckless and excessive borrowing as well as reduce future unsustainable debts that could affect economic gains.
The group wants the mechanisms for the regulation of borrowing in the 2007 fiscal responsibility act which provides a framework for public debt management, to be activated
This they believe should include setting out conditions of borrowing and mandating the setting of limits on consolidated debts of federal, state and local governments.
But the commission says there are still some challenges towards getting this done.
A research project that centres on revealing the challenging role of private creditors in hindering people’s recoveries was launched at the event
It would also look at how to enhance the urgency with which the international community must address sovereign debt crises.
