It has emerged that Nigeria can not crawl out of recession anytime soon without resorting to borrowing the outrageous sum of $29.9 billion to fund the 2017 budget proposed by President Muhammadu Buhari.
The majority leaders of the House of Representatives, Femi Gbajabiamila (APC-Lagos) on Sunday, December 18, insisted Nigeria must proceed with the plan to borrow as a possible way out of the country’s economic crisis.
While presenting the end of year report on the activities of the House of Representatives for 2016, Gbajabiamila said:
“It is what this government found on ground that informed the quantum and the nature of the borrowing they have to undertake. Now to get out of this recession and the sorry state we have found ourselves, I don’t think we can do it without borrowing.”
According to the lawmaker, borrowing is a necessity at this stage of economy. He added that it is an essential feature of democracy since even developed countries like the US, Germany, England, also borrow money when necessary.
“For now, the borrowing is necessary to pump into the system to inflate activity in the economy, diversify the economy, there is a lot of things we need money for and if the country is not making money, like we used to we have to borrow.”
Speaking also on the issue of salary increase of government workers, Gbajabiamila admits that in the present state of soaring inflation and recession, people can no longer coop with low salaries, hence something needs to be done about it. The lawmaker said:
“That is the reason we are here, whether government or private workers, we’re here because of the people. And we will begin to look at that viz-a-viz inflation, unemployment.
“Personally, I believe wages are too low as we stand and I think something has to be done about it. And I think the House will be proactive in making that move.”