The Deputy Speaker of the House of Representatives, Benjamin Kalu, has condemned Nigeria’s reliance on debt, saying that the country needs to be self-sufficient and independent instead of relying on loans.

Kalu, who spoke at a stakeholders’ dialogue on implementing Section 45 of the Fiscal Responsibility Act in Lagos on Saturday, said that past governments sustained budgets through loans, an approach he considered unsustainable for the country’s development.

He also warned banks and other financial institutions against lending to the government without complying with the provisions of Section 45 of the FRA, which he said is unlawful.

Kalu expressed disappointment in state governments for alleged borrowing for consumption rather than focusing on long-term capital expenditure for production purposes. 

“We encourage states to stop depending on the federal government and boost their local production, thereby increasing internally generated revenue.

“I commend FRC in its responsibility of keeping up with promoting a transparent and accountable government fiscal management framework for Nigeria,” Kalu said.

He urged them to explore their own potential and enhance local production to increase internally generated revenue instead of relying solely on the Federal Government.

“It is important for commercial banks to liaise with the government by making disclosure on the inflow of the grants,” he said.

“We have billions of dollars coming into Nigeria as grants, but cannot pinpoint where the grants are going into the economy.

“So, it’s important that the commercial work together with the government to rebuild the country, because a buoyant economy would also contribute to the activities of the banks too,” he added.