By Atiku Abubakar
Late last week, Moody’s Investors Service (The Moody’s) sadly, but not unexpectedly, downgraded the Nigerian Government’s Credit Rating from B3 to Caa1. This is a very significant downgrade.
Moody’s notes the FGN’s deteriorating fiscal and debt position and its lack of capacity to respond to same; it notes the ‘exacerbating policy trading-off’ between debt servicing and the financing of critical sectors, including education, health, and other social programmes; it also notes the government’s inability to curtail its addiction to deficit financing and its appetite for more funds from the Central Bank’s Ways and Means.
All three observations are a direct indictment of the country’s political leadership for its failures in the management of our fiscal resources. The APC-led government lacks the critical competencies to initiate and implement innovative solutions to our problems and deliver on their mandate with the desired impact.
If given the opportunity to lead the country, I will act differently and change the economic direction of Nigeria for the better. I will undertake far-reaching fiscal restructuring to improve liquidity and the management of our fiscal resources.
Among others, I will undertake an immediate review of government spending with a view to eliminating all leakages arising from subsidy payments.
Second, I will stop all fiscal support to ailing and under-performing State-Owned enterprises.
Third, I will take steps to improve spending efficiency by gradual reduction of government recurrent expenditures.
Fourth, I will undertake a review of government procurement processes to ensure value-for-money and eliminate all leakages.
Finally, I will focus on non-debt financing by promoting a private sector-led Infrastructure Development Fund for the financing and delivery of key infrastructure projects.
▪︎ Abubakar is the presidential candidate of the Peoples Democratic Party and former Vice President of Nigeria, 1999-2007