It said that with this, the country is going to suffer just like Greece.
"Some people may be wondering why we raised an alarm about the budget. The reason is simple.
“When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.
“By every standard, this budget is a booby trap against the nation."
The National Publicity Secretary of the main opposition party, Chief Olisa Metuh, said this in an interview with journalists in Abuja on Tuesday.
He explained that "When you break down the proposed N1.84tn borrowing, you discover that it amounts to borrowing N5bn everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5bn per day and how do they intend to pay back?
“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests? And does he intend to accumulate a colossal debt for future generations of Nigerians?
“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84tn without specific projects and precise repayment outline.
“This is worse still in an oil-driven, mono-economy at a time crude oil is selling for $30 per barrel and is speculated to go down to about $20 or even lower in the next one year. The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.”
Metuh said from all indicators, “They are driving us to be like Greece, and to plunge us into an unnecessary debt. When the PDP took office in 1999, we achieved the cancellation of inherited debts.
“This administration, in seeking to accumulate debts, should know that there is no possibility that any country in the world will give us debt cancellation anymore.”
He explained that "When you break down the proposed N1.84tn borrowing, you discover that it amounts to borrowing N5bn everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5bn per day and how do they intend to pay back?
“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests? And does he intend to accumulate a colossal debt for future generations of Nigerians?
“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84tn without specific projects and precise repayment outline.
“This is worse still in an oil-driven, mono-economy at a time crude oil is selling for $30 per barrel and is speculated to go down to about $20 or even lower in the next one year. The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.”
Metuh said from all indicators, “They are driving us to be like Greece, and to plunge us into an unnecessary debt. When the PDP took office in 1999, we achieved the cancellation of inherited debts.
“This administration, in seeking to accumulate debts, should know that there is no possibility that any country in the world will give us debt cancellation anymore.”
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