Socio-Economic Rights and Accountability Project (SERAP) has urged President Muhammadu Buhari to “issue an immediate moratorium on borrowing by the Federal Government and the 36 states to address a systemic debt crisis, prevent retrogressive economic measures, and the disproportionately negative impact of unsustainable debt on the poor Nigerians.”
The request followed the recent approval by the National Assembly of President Buhari’s request for a $5.8bn loan and grant of $10bn. Previous approvals in 2021 alone include $8.3bn; €490m, and $6.1bn. The foreign debt stock of the Federal Government, 36 states, and Federal Capital Territory reportedly stands at $37.9bn.
In an open letter dated 18 December 2021 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “A moratorium on borrowing would create a temporary debt standstill, and free up fiscal space for investment in Nigerians’ needs, as well as ensure sustainable economic and social recovery from the COVID-19 pandemic.”
SERAP said, “Without a moratorium on borrowing, your government and many of the 36 states may be caught in a process-driven mostly by creditors’ needs. This will result in an exorbitant social cost for the marginalized and vulnerable sectors of the population
