By Omolabake Fasogbon
The federal government has defended its resolve to obtain $6.1billion foreign loan, stating that the move was in the interest of Nigerians, most especially tax payers.
The Senior Special Assistant to the President on
Niger Delta Affairs, Senator Ita Enang clarified the move during by the Chartered Institute of Nigeria (CITN) fellow conferment ceremony held in Lagos, recently.
According to the former lawmaker, the present state of the country resulting from insecurity and global pandemic, amongst others made borrowing an inevitable survival strategy for Nigeria.
He noted in particular that the option of borrowing would save taxpayers the burden of sudden tax increment.
“Essentially, government borrows so that it can enable higher spending without having to increase taxes. Tax revenues are less than predicted, hence we see sharp rise in government borrowing.
“Borrowing means government can meet a temporary shortfall by borrowing, rather than having to immediately cut back on spending. “Like an overdraft facility, government borrowing allows for more flexibility and means they can maintain wages and spending commitments without having to keep cutting spending,” he added.
Enang said the controversy over President Buhari ’s request for $6.1billion loan to fund 2021 budget deficit should not be.
“It should be noted that the increase in Nigeria’s debt stock between 2015 and 2018 was due to the borrowings of the three tiers of government, and not the federal government alone.
“Note also that the rising debt was to improve infrastructure and create jobs in Nigeria, where unemployment has been projected to rise to 33.5 per cent, from the current rate pegged at 23.1 per cent,” he insisted.
Enang solicited support for federal government policies such as the increase in electricity tariff, which he said was expected to generate revenue.
He added: “This is important to sustain our national debt. The government has been digging up new measures to improve its revenue, one of which is the tax reform.”
Earlier, President of CITN, Gladys Olajumoke Simplice urged government to always position tax professionals at the helm of MDAs’ tax affairs to enhance professionalism, revenue generation and curb leakages.
She also charged the newly inducted 203 fellows on knowledge development and professionalism.
