Emma Ujah, Abuja Bureau Chief
A group of 55 Civil Society Organisation (CSOs) have called on the federal government to engage the nation’s creditors with a view to restructuring the nation’s debt.
The recommendation was contained in a communique which was distributed to media organisations in Abuja, yesterday.
Signed by Ogeri Eleri of Sustainable Nigeria Programme, it was said to have been issued at the end of a two-day conference with the theme, “Debt, Development and Climate Challenges in: realities and Solutions.”
CSOs at the conference included: Action Aid, Accountability Lab, BudgIT Foundation, Christian Aid, OXFAM, Follow Taxes and Centre for Social Justice.
They specifically urged the administration of President Bola Tinubu to engage China and private creditors to restructure the nation’s debts as according to them, spending over 80 percent revenue on debt servicing was not sustainable.
According to the communique, “Specifically, Nigeria should join the Emergency Coalition for Debt Sustainability and Climate Prosperity led by the V20, rally behind the Bridgetown Initiative and actively engage in the reform package on the international financial architecture suggested by the UN Secretary-General.
“We support the key demands of these initiatives, which include among others:
“An enhanced Debt Sustainability Analysis that integrate climate and other sustainability risks, and climate resilience benefits, as well as estimates of a country’s financing needs for climate change adaptation, mitigation, and achieving the broader goals set out in the 2030 Agenda for the SDGs;
“Access to debt restructuring for all debt-distressed, climate-vulnerable low and middle-income countries, and a speeding up of debt relief talks;
“A debt restructuring framework that incorporates adequate incentives to ensure private creditors participate and bear a fair share of the burden”
“The inclusion of disaster clauses in lending deals with public and private creditors to allow countries to divert debt payments to disaster relief;
“The possible establishment of a new Global Debt Authority, designed to operate in an inclusive manner, independent of creditors or debtors, and the development of an international legal framework for sovereign insolvency.
“China as Nigeria’s largest bilateral lender should be engaged in discussions on debt restructuring alongside the above initiatives.
Going further, the CSOs recommended that future borrowings must be project-specific in order to ensure efficient utilization of loans.
They added that the era of the National Assembly approving loan requests from the executive without proper scrutiny was over, as they called for Public Hearings by the National Assembly on every loan request by the federal government in the future.
“The National Assembly should review the existing legal and institutional frameworks relevant to debt management with the view of closing existing loopholes and strengthening transparency and enforcement.
“For example, the Fiscal Responsibility Commission and Debt Management Office should be empowered to sanction breaches of existing laws and regulations.
“Lawmakers should carry out loan approvals with proper scrutiny and approvals be subject to public hearings and input.
“Public disclosure of, for example, the terms and conditions of loans, and borrowing plans are critical steps to increase transparency and accountability in Nigeria,” CSOs recommended.
They also charged the Federal Ministry of Finance, Budget and National Planning and its Agencies to take pragmatic steps in order to boost revenue generation.
This, they believed, should include improving tax compliance by reinforcing the revenue administration and by reviewing tax incentives given to the private sector.