PENGASSAN knocks FG over Nigeria’s debt spike

THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that Nigeria’s rising debt will further worsen the economy and the living condition of the people if drastic measures are not taken.

The union asked the President Bola Tinubu-led Federal Government to put measures in place to limit incessant borrowing by both federal and state governments.

PENGASSAN said Nigeria’s N107 trillion debt profile is outrageous and berated both the federal and state governments for achieving nothing tangle with the money borrowed so far.

President of PENGASSAN, Comrade Festus Osifo, who said this when he addressed journalists at the sideline of the union’s National Executive Council (NEC) meeting held in Abuja, added that it is unacceptable that the borrowings are not invested judiciously or with proper accountability.

Osifo said, “The menace of our borrowings and the consequent increasing debt profile, both at the federal and state levels of our country, is 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.

“Borrowings are supposed to 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 GDP of our country.

“The federal and state governments should, as a matter of urgency, stop trading away the future of our nation and proactively use resources within their means to meet the obligations they owe Nigerians rather than this purposeless borrowing.”

On the issue of corruption in the country, Comrade Osifo, who is also the president of Trade Union Congress (TUC), said government at all levels must do all they can to end such endemic in the country.

“Fighting institutional corruption in Nigeria requires a multi-pronged approach that encompasses prevention, legal reforms, civil society empowerment, technological solutions and education.”

“Only by tackling corruption at its roots can we hope to build a future where honesty, transparency and integrity prevail. Let us join hands, raise our voices and demand an end to institutional corruption in Nigeria.

“As a nation, we must focus on prevention rather than solely relying on punishment. Prevention is the most sustainable and cost-effective way to tackle corruption. Enhancing transparency and accountability mechanisms within institutions are crucial. This can be achieved by implementing robust internal oversight mechanisms, such as regular audits, transparent financial management systems and strict adherence to procurement regulations. By establishing a culture of transparency and promoting ethical behaviour, we can reduce opportunities for corruption to take root.

“Moreover, we must empower civil society organisations and the media to act as watchdogs. These groups play a critical role in exposing corruption and holding institutions accountable. They provide an avenue for citizens to report corrupt practices and ensure that they are investigated and acted upon. By providing protection and support to these organisations, we can create an environment where whistleblowers feel safe and can come forward to expose corruption without fear of retaliation.”

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