2024 Budget: MAJAN blames F.G. on the approval of N8.2 trillion for debt servicing

2024 Budget: MAJAN blames F.G. on the approval of N8.2 trillion for debt servicing
•Says Debt servicing killing the economy
••Suggest blue economy as the way forward

By Ossy Onyenwezi

The Maritime Journalists Association of Nigeria (MAJAN) has praised President Bola Ahmed Tinubu GCFR for signing 2024 budget benchmark of N28.7 trillion into law.
MAJAN also commended the two arms of the National Assembly for prompt passage of the 2024 appropriation Bill, which was increased from N27.5 trillion to N28.7 trillion.

However, the Association has shown disapproval on the huge amount of N8.2 trillion allocated for debt servicing, stressing that debt servicing is killing the economy of the nation.

MAJAN advises President Tinubu to focus more on harnessing the potential abound in blue economy in order to cut down excessive borrowings.
MAJAN, as an association, made these comments after analysing the key estimates of the budget as a group.
The Association strongly believes that the federal government can curtail foreign loans if it looks inward, stimulating income flow for the country.

“A whopping sum of N8.2trn allocated for debt servicing alone is enough to build infrastructure across the country.This is the time for President Tinubu to focus on the blue economy for economic sustainability. We can’t go on borrowing and spending so much to service the debt,” MAJAN advised.

The Association stresses that the President has taken a bold step in creating a ministry of blue economy, but more practical steps should be taken to walk the talk and achieve results within a short period.
In the budget analysis, N10 trillion was approved for capital expenditure, recurrent expenditure takes N8.8 trillion; N8.2 trillion for debt services while N1.7 trillion goes into statutory transfers, resulting to an increase of N1.2 trillion to the budget amount from what was initially proposed.

Also, the president harped on more funding for the judiciary to promote justice in the system. As such, the statutory transfer for the judiciary was increased from N165 billion to N342 billion to enhance efficiency at all times.
Beyond all these, it is also the considered view of MAJAN that the issue of unemployment should be paramount. We believe that creating jobs and providing an enabling environment for businesses to thrive would also help in cutting down foreign borrowings and help build a robust economy.

The government should do more on strengthening infrastructures. Attention should be given to the provision of regular power supply, which has caused most companies in Nigeria to either pack up or relocate to other countries where there is steady power supply.The cost of doing business in Nigeria has greatly increased thus, resulting in so many companies relocating and some downsizing their workforce, and this further puts a strain on the already terrible job market.

The road network in the country should also be tackled. The cost of transporting goods and services from one location to another is exorbitant.
All these are contributory factors to inflation and the high cost of commodities in the country.

Therefore, President Bola Ahmed Tinubu should in the spirit of renewed hope agenda, ensure that the 2024 budget should take cognizance of the aforementioned issues by making sure that the implementation of the budget is done with utmost sincerity and integrity. This, in our view, is the right path to renewed hope.