PENGASSAN Tackles FG, States over Nigeria’s Alleged N107tn Debt Profile

Onyebuchi Ezigbo in Abuja

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed concern over what it described as outrageous national debt profile that is currently hitting over N107 trillion.
It cautioned against purposeless borrowings which it said could lead to a speedy destruction of the country.
Addressing the National Executive Council (NEC) meeting, PENGASSAN President, Festus Osifo said the menace of the country’s borrowings and the consequent increasing debt profile, both at the federal and state levels is like a time bomb with highly catastrophic implications.

“It is worse that these borrowings are not invested judiciously or with proper accountability. Countries that have benefited from debts and improved their economies did so because they borrowed with purpose and accounted for that purpose with returns to offset their loans.
“The borrowing rate calls for deep concern, especially with the reported increase in FAAC allocations and internally generated revenue. The increased debt profile approaching over N107 trillion, with no corresponding evidence of proper use of the loans is a show of purposeless borrowings and a speedy destruction of our tomorrow and this should be halted,” he said.

The PENGASSAN president said the association was of the view that borrowing should be tied to projects that will generate funds for the liquidation of such loans or stimulate other economic activities that will lead to an improvement in the Gross Domestic Product (GDP) of the country.
He said that the federal and state governments should as a matter of urgency stop trading away the future of the nation and proactively use resources within their means to meet the obligations.

Osifo who devoted part of his speech on the assessment of the state of the nation, urged the federal government to rethink its plan to subsidise cost of essential goods in the country.
He said although the move to subsidise essential goods and help cushion the current high cost of living is well-intentioned, its implementation may be counterproductive.

“We are worried about the implementation of targeted subsidies tailored to the specific needs of each state. While the government’s intentions to help alleviate the burden of the cost of living on Nigerian citizens are noble, we must also be mindful of the potential implications of such a subsidy.
“It is important that we carefully consider the long-term effects of this policy and explore alternative solutions that can address the root causes of poverty and inequality in our society as giving of handouts alone cannot completely solve the problem,” he said.

Osifo further expressed concern over kidnapping incidents in the country, saying that it has become a grave threat to the safety and security of the society, and shaking the very foundations of the nation.
He said that as at the last count, over 1,400 Nigerian students and pupils have faced this terror tale.
Osifo also used the opportunity to brief the NEC meeting on the milestones recorded by the association including improvement in members welfare and the restructuring of the internal operations of PENGASSAN.

He said: “Our association has been repositioned. It is now rooted in professionalism, security of jobs, enhancement of welfare and benefits, national patriotism, respect for members and upholding employees in high esteem.

“I wish to inform our dear NEC members that we have succeeded in pushing the boundaries of pay packages in the industry.”