Former vice-president Atiku Abubakar says Nigeria needs to stop borrowing to avert sliding into a further recession.
Atiku, on Sunday, in a series of posts on his official Twitter handle reacted to Nigeria’s economic slip into recession.
In his statement titled, ‘We Must Exit This Recession With Precision,’ Atiku said it is a very heavy heart that he received the news which confirms that for the second time in five years, Nigeria has entered into another recession.
He said the nation must stop borrowing for anything other than essential needs adding that, the more the country keeps borrowing, the more it stands the risk of defaulting.
“The more we borrow, the more we will need cash to make interest and principal payments, and the less cash we will have to make necessary investments in our economy and our people.
“If we keep borrowing, we stand the risk of defaulting, and that will make recession a child’s play because we will lose some of our sovereignty,” he said.
Atiku also called on President Muhammadu Buhari to heed to the patriotic counsel given by himself and other well-meaning Nigerians on cutting the cost of governance.
A fragment of his speech can be read below
“A practical approach to this is to place a 15% tax on all Business and First Class tickets sold to and from Nigeria, on all luxury car imports and sales, on all private jets imports and service charges, on all jewelry imports and sales, on all designer products imported, produced or sold in Nigeria, and on all other luxury goods either manufactured or imported into Nigeria, with the exception of goods made for export.
The proceeds of this tax should be exclusively dedicated to a Poverty Eradication Fund, which must be managed in the same manner as the Tertiary Education Trust Fund, or the Ecological Fund.
I further propose that a 1% poverty alleviation tax should be legislated by the National Assembly on the profits of every International Oil Company operating in Nigeria, and international airlines doing business in Nigeria, which should also go towards the proposed Poverty Eradication Fund.”