Reduce borrowing – MDAs can generate more income
Senate Speaker Ahmad Lawan said the federal government should explore other ways to fund its projects to reduce borrowing.
Lawan spoke at a joint session of the National Assembly on Thursday where President Muhammadu Buhari presented the 2022 budget proposal.
The Senate Speaker said that ministries, departments and agencies (MDAs) have the potential to contribute more to the federation account.
“Mr. President, we understand that due to the scarcity of revenues, the federal government must resort to raising funds from foreign and domestic sources to provide infrastructure across the country,” he said.
“This is why the National Assembly approved the loan requests. The federal government’s commitment to providing infrastructure across the country means that funds must be raised one way or another.
“The government should also explore other sources of financing for its projects in order to reduce borrowing. “
Lawan said the National Assembly’s recent efforts in working with the executive to ensure that revenues come from income-generating agencies are a step in the right direction.
“Equally important is the recent position taken by the legislature and the executive to insist on a zero allocation for ministries, departments and agencies (MDAs) that do not pay / upload their income for the 2022 allocation,” he said. -he declares.
“This has seen an increase in MDA contribution of over 400 billion naira. In my opinion, MDAs can contribute to the federation account much more than that.
“This policy should be broadened and deepened to cover more MDAs. “
In the second quarter of 2021, the Debt Management Office (DMO) said Nigeria’s total public debt (federal and state governments) reached N35.460 billion.