Follow Fiscal Responsibility Act on public borrowing

The recent appearance of the Minister for Transportation, Rotimi Amaechi, before a National Assembly committee probing the terms of loans procured for various developmental projects, especially the Chinese loans, has brought to the fore the challenge of arbitrary economic decision making as against the rule-based economic system provided in our laws and policies.

First, before the commencement of any borrowing activity, the FRA in Section 42 provides that the President shall, within 90 days from the commencement of the law and with advice from the Minister of Finance, subject to approval of the National Assembly, set overall limits for the amounts of consolidated debt of the federal, state and local governments pursuant to the provisions of Items 7 and 50 of Part I of the Second Schedule to the Constitution and the limits and conditions approved by the...

Again, Section 44 of the FRA prescribes that any government in the federation or its agencies and corporations desirous of borrowing shall, specify the purpose for which the borrowing is intended and present a cost-benefit analysis , detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.

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