Apply Caution on External Borrowing, KSM Tells FG

Emma Okonji

The Catholic Order of The Knights of Saint Mulumba (KSM),has called on the federal government to apply caution on external borrowing so as to forestall the prospect of Nigeria sinking deeper into the debt trap as it was gradually reaching its limit in borrowing. 

The christian body noted that with a debt overhang of $17.1 billion to the World Bank’s International Development Association (IDA) alone, Nigeria has become the third largest debtor to the World Bank’s IDA, and thereby cautions the government against further borrowing and ensuring that great care was taken to ensure the judicious utilization of the already obtained loans. 

The advice came as one of the resolutions taken at the 45th edition of the Annual Supreme Council Convention of KSM, which was held at the International Conference Centre, Calabar, Cross River State, recently. 

In a 15-point communiqué issued at the end of the convention signed by the  Supreme Knight; Sir Charles Mbelede,  KSM among other things, noted several challenges affecting the country currently and offered suggestions on the way out.

The KSM also noted the government’s deliberate effort to contain multiple taxation and commends the vision behind the introduction of the Tax Reform Bills by the federal government.  It however, cautioned that “as the most consequential reforms in revenue generation in Nigeria in recent times, the federal government is urged to consult widely with a view to getting the concurrence of all the critical stakeholders especially dissenting states and ensuring the acceptance of the tax reform bills by Nigerians.”

The Order called for greater efforts by the government to curb inflation and contain the high cost of living, especially the high cost of food items and medicines. “Similarly, the floatation of the Naira and its evident depreciation as well as the attendant volatility in the foreign exchange market should be better managed by the Central Bank of Nigeria in the overall interest of the nation’s economy,” it advised