• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Saturday, June 28, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home News

Esele encourages Nigeria to borrow for capital projects

The Matters Press by The Matters Press
October 20, 2021
Reading Time: 3 mins read
0
Buhari presents N8.8trn 2019 budget

Buhari presents budget

Buhari presents budget

Mr Peter Esele, former President, Trade Union Congress (TUC) has advised the Federal Government to borrow for capital project, rather than for consumption.

RELATED POSTS

Tinubu’s N60b Intervention in Gombe Agro-Livestock Zone excites group

N1.5trn recapitalisation of Agric bank will herald food security – TMV

Lamido Wrong on Tinubu’s June 12 Role, haunted by his anti-democratic past- TDF

Esele also a public affairs commentator, gave the advice on Wednesday, in Benin, while analysing the 2022 budget proposal recently presented by President Mohammadu Buhari to the National Assembly (NASS).

He noted that from the proposed budget, it was evident that the country was borrowing for consumption rather than for capital projects.

This he said was evident in the proposed allocation for recurrent and capital expenditure.

He noted that the recurrent expenditure in the proposed budget was almost half of the entire budget.

According to him, this was not a recipe for sustainable development, because with recurrent expenditure taking larger chunk of the total budget showed that the country was borrowing to fund its consumption.

President Buhari had on Oct. 7, presented a proposed budget of N16.39 trillion before the National Assembly for the 2022, fiscal year.

A breakdown of the budget had shown that N6.83 trillion would be spent on recurrent expenditure while N5.35 trillion would be spent on capital expenditure.

Esele therefore said if the country was serious about development, there was need for a reduction in the recurrent expenditure.

He noted that in other parts of the world, recurrent expenditures were not more than 20 per cent of budgets.

“So if you are spending so much on recurrent like it’s evident in the 2022 proposal, then what do you have left for development?

“Looking at the budget for capital expenditure, it is as if we are treading on water.

“I am not saying that there will be no progress at all, but where the world is making five steps forward, we will be making just a step.

“Which means, we would not be making progress as we should”.

The former TUC president also noted that the debt servicing by the country was equally high.

He therefore advised for a pro-active action by the government in managing her debt.

He however lauded President Buhari for prioritisiing Security and Education in 2022 budget proposal, noting that three fundamental sectors, which include education, security and health drive a country.

He stressed that these three sectors were foundational, because if they were well laid out, it would become easier for investors to bring their investment to the country’s economy.

“After prioritising these three, infrastructure is expected to be next, because ordinarily, a robust, healthy and educated society would guarantee everything and it’s a panacea for growth.

“Adequate security gives room for investors to invest in your country and aid development, but without security, there will be no investment, and then poverty thrives.

“So when you are talking about eradicating poverty, because from the budget proposal, allocation for Social Development/poverty eradication was higher than allocation for health.

“It means you are dealing with the symptom and not the cause. So it would be appropriate to deal with the cause of a problem, rather than treating the symptom,” he said.

Esele also lamented that in spite of huge budgetary allocation for Social Development/poverty eradication, no Nigerian had come out to say he had benefitted from it.

He therefore advised that there was need for accurate records and data to be made available for Nigerians to know who the beneficiaries were and to also know the Key Performance Indicators (KPI), in order to know its benefits to the economy.

The former TUC president however faulted the allocation to the national assembly.

According to him allocating N134 billion to the NASS is way too much, because it amounted to spending 0.82 per cent of our total budget on just 456 persons.
“This means it’s costing the country more than N200 million to maintain each NASS member.

“So let’s ask ourselves what are they spending such amount of money for and on?

“That is why they have not been able to earn the respect of Nigerians, because each time, they act as if they are above the law and appropriate whatever they like to themselves.

“Nigerians should begin to ask questions,” he said.

Tags: Borrowing
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

$2.5 billion JBS investment, a big economic victory for Nigeria –  TDF
Economy/Technology

Tinubu’s N60b Intervention in Gombe Agro-Livestock Zone excites group

June 27, 2025
ActionAid, SWOFON call for urgent completion of BOA recapitalisation
Agriculture

N1.5trn recapitalisation of Agric bank will herald food security – TMV

June 26, 2025
Lamido Wrong on Tinubu’s June 12 Role, haunted by his anti-democratic past- TDF
Energy

Lamido Wrong on Tinubu’s June 12 Role, haunted by his anti-democratic past- TDF

June 25, 2025
Tinubu’s Visit to Benue, Mark of True Leadership, Renewed Hope
News

Tinubu’s Visit to Benue, Mark of True Leadership, Renewed Hope

June 25, 2025
79 candidates for presidential election
News

Tinubu’s new INEC building: A consolidation of democratic institutions, legacy in Nigeria – TDF

June 23, 2025
Gombe: Troops take over to enforce peace
News

Nigerian Army kills 6,260 terrorists, rescues 5,365 civilians in 2 years

June 20, 2025
Next Post
Nigerian celebrities, youths hold memorial protests against police brutality

Nigerian celebrities, youths hold memorial protests against police brutality

Re-jigged Nigerian army kills 50 bandits in renewed onslaught

Troops kill 50 bandits in Nigeria’s Kaduna state

Recommended Stories

Consumer commission, CBN, EFCC investigate violations in money lending

We’ll make withdrawal of large new notes difficult, unattractive – CBN

November 23, 2022
China launches first independent mission to Mars

China launches first independent mission to Mars

July 23, 2020
Chevron, NNPC secure $1.4bn for drilling project

Chevron, NNPC secure $1.4bn for drilling project

December 2, 2022

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Tinubu’s N60b Intervention in Gombe Agro-Livestock Zone excites group
  • N1.5trn recapitalisation of Agric bank will herald food security – TMV
  • Lamido Wrong on Tinubu’s June 12 Role, haunted by his anti-democratic past- TDF

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us