Barr. Onofiok Luke, member representing Etinan/Nsit Ubium/Nsit Ibom federal constituency.
By Abasifreke Effiong
A member of the House of Representatives, Barr. Onofiok Luke, has raised concern about Nigeria’s projected debt servicing obligation in 2022.
The sum of N3.9 trillion, which represents almost 25% of the proposed budget for 2022 has been earmarked for debt servicing.
Barr. Luke who represents Etinan/Nsit Ubium/Nsit Ibom federal constituency and chairs the Committee on Judiciary said the federal government must find alternatives to fund its budget rather than the frequent resort to borrowing.
‘Let us do what we can to reduce deficit and borrowing. There is nothing wrong with borrowing provided we borrow and put it for production not for consumption.
‘Let us take the future generations of Nigeria into consideration while we get to borrow and make sure the borrowing are being put into productive ventures’, the media unit in the lawmaker’s office quoted him to have said.
Earlier this week, a national daily reported that each Nigerian is owing N64,684 to foreign creditors. The country’s external debts stand at US$33.5 billion.
READ : Akwa Ibom set to open microfinance bank to support farmers
Barr. Luke noted that the 2022 fiscal proposal has a deficit of N6.2 trillion and the government is proposing new borrowings to finance the deficit.
‘What this implies is that the total public debt of the country is expected to rise to N5 trillion in 2022 fiscal year. This is worrisome not only for today but generations unborn and the future of Nigeria’.
He urged the federal government to channel borrowed funds into development of critical sectors like power and transportation.
The lawmaker advised the federal government to channel recoveries from
loots and misappropriated funds to fund the budget and reduce borrowings.
Barr. Luke also kicked against 13% inflation rate projection in the budget.
‘The target of 13% inflation is not feasible. What is achievable is that we should try to have a mechanism that would address the cost of food, cooking gas, and electricity bill. In this case, there should be provision for metres and we should make sure we cater for Nigerians in this regard.’
He lauded the federal government for making provision of N50 billion in the 2022 budget for payment of hazard allowance for medical personnel, hoping that it will mitigate incessant industrial actions from healthcare providers.
Barr. Luke equally commended the government for proposing a statutory allocation to the National Agency for Science and Engineering Infrastructure and increasing statutory transfer to the Judiciary.
‘The increase of statutory transfer by 10 billion to the national judicial council to take up the judiciary is quite commendable.’
RELATED STORY : Next Governor of Akwa Ibom must continue with industrialisation – Luke
Barr. Luke however urged the federal government to increase the provision made for the funding of Calabar – Itu road.
The federal government awarded contract for the reconstruction of the Calabar-Itu road in 2018, but inadequate funding has stalled the project since then.
Commuters now spend 6-8 hours from Mbak Itam in Akwa Ibom State to Odukpani junction in Cross River State, a distance of about 12 kilometers.
