- The APC says the proposed $5.5bn loan by the Buhari administration is necessitated by the modern financial realities of running a government
- The party states that governments in developing economies may need to resort to borrowing to finance development projects
- APC dismisses claims by the PDP that it handed over a buoyant economy to the Buhari administration in 2015
The All Progressive Congress (APC) has justified the proposed plan by the Buhari administration to obtain a $5.5bn loan to assist it in its developmental projects.
The party’s spokesperson, Bolaji Abdullahi, in a statement on Sunday, October 15, said the proposed loan was necessitated by the modern financial realities of running a government.
The APC also denounced the Peoples Democratic Party (PDP) for accusing the Buhari administration of mismanaging the buoyant economy it inherited.
The party said in an era where taxation and other revenue streams may not necessarily provide sufficient funds for economic development, governments in developing economies may need to resort to borrowing to finance developmental projects, Premium Times reports.
”The recent borrowing plans proposed by the President Buhari administration is no different as the president has clearly stated in his request to the National Assembly that the loan will be used to finance the 2017 budget deficit and invest in critical and verifiable infrastructure project which will ultimately grow the economy,” the party said in its defence.
The APC said the claims by the opposition that it handed a buoyant economy to the ruling party when it left power in 2015 was false.
“The PDP’s in its statement ‘unapologetically’ claimed that it meritoriously governed the country for 16 years and handed over a buoyant economy to the APC in 2015.
“Really, what could be further from the truth? The APC considers the claim a new height of PDP’s insensitivity to the populace and has further exposed the PDP as a party unrepentant for the rot it left the country after its 16 years rule.
“Even when crude sold above $100, the immediate-past PDP-led administration struggled to build savings. In addition, the excess crude account was misspent. Poor capital expenditure meant badly-needed infrastructure development was put on hold. This forced construction companies with government contracts to cut back and sack thousands of workers,” the APC further explained.
Meanwhile, the 36 states shared N173.8 billion from the federation account in September 2017 from the distributable revenue generated for the month.
The breakdown was obtained by the News Agency of Nigeria (NAN) in a report from the office of the Accountant-General of the Federation in Abuja.
For example, revenue generated in January is shared in February; thus, the revenue shared was actually generated in August and shared in September.
The key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service and the Nigerian Customs Service.
NAIJ.com learnt that the last Federation Account Allocation Committee (FAAC) meeting in September, federal, states and local governments shared N637.7 billion.
The report showed that the revenue distributed included the Gross Statutory revenue, Value Added Tax, exchange gains and Petroleum Profit Tax.
The report showed that before distribution to the states, their liabilities were first deducted.
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