on Monday, Debt stock analysis is beyond Atiku’s pay grade, says BMO

Former Vice-President and presidential candidate of the Peoples Democratic Party (PDP) in this year’s election, Atiku Abubakar’s comments on the country’s debt profile is a clear example of a person dabbling in a matter beyond his pay grade, the Buhari Media Organisation (BMO) has said.

It faulted the former Vice-President, following his commented on “Nigeria’s Total Public Debt Portfolio as at March 31, 2019″ released by the Debt Management Office (DMO) that Atiku only wanted to make political gains without fully digesting the document.

In the statement by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, the organisation said Atiku Abubakar had again shown that he lacked a basic understanding of economics and governance, despite spending eight years as a Vice-President.

It said: “We have seen the latest position of the former Vice-President on the nation’s debt profile and how he sought to trivialise it in order to whip up sentiments. We are, however, surprised that he does not know that a nation’s debt portfolio cannot be discussed in isolation of the Gross Domestic Product (GDP), especially in terms of income and national assets.”

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“People who understand basic economics would tell you that at 19 per cent of GDP, Nigeria’s borrowing is quite low when compared to countries like South Africa, Brazil, Ghana and Angola, but Atiku Abubakar is opting to play to the gallery with beer parlour analysis couched in flowery language.

“It is even a far cry from the 25 per cent debt-to-GDP benchmark set by the Nigerian authorities.

“One other thing that the former VP showed little understanding of is the difference between public and Federal Government debt.

“The debt stock document noted that the Federal Government owes N13.1 trillion domestically, while the states and the Federal Capital Territory (FCT) owe N3.97 trillion. But this means nothing to an opposition element that needs to hang on to any straw to be on the front pages of the media.

“And just like the DMO said, and as the government has affirmed through Vice-President Yemi Osinbajo, even before now, the debt stock had risen. But unlike what the PDP presidential candidate, who has yet to come to terms with his electoral loss wants Nigerians to believe, it has nothing to do with profligate spending.

“A large chunk of the debt is tied to projects and Nigerians could easily see the impact of Sukuk bond on the hundreds of kilometres of roads under construction or that are being rehabilitated. This is aside from the nationwide railway project that is bound to touch every state of the federation before the end of the President’s second term in office.”