- The Nigerian government has banned the purchase of official vehicles as part of its move to cut unnecessary spending
- The move is in line with the recommendations in a report by the Osinbajo-led committee to mitigate the impact of Covid-19 on the economy
- PresidentBuhari has approved the implementation of the report on the rationalisation of government agencies
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As the effect of the coronavirus pandemic bites harder on the economy, the Nigerian government has banned the purchase of officials vehicles, except for ambulances, fire-fighting vehicles and other essentials.
This was revealed in a document made available to newsmen by the special adviser to the president on media and publicity, Femi Adesina.
Legit.ng gathers that the document highlights the key recommendations in the Nigeria Economic Sustainability Plan.
The plan was developed by the Economic Sustainability Committee which was chaired by Vice-President Yemi Osinbajo to m COVID-19 pandemic.
Among others, the federal government banned what it described as non-critical and administrative capital spending.
The document also recommends expansion of the Integrated Personnel and Payment Information System (IPPIS) to cover all federal government’s MDAs.
President Muhammadu Buhari has approved the implementation of the report on the rationalisation of government agencies.
In a related development, the president of Namibia, Hage Geingob, has said his government will not order a new fleet of vehicles for government officials till 2025.
President Geingob made this known in a statement he posted on Twitter on Thursday, May 14, noting that the decision is crucial as the country and the rest of the world brace up of economic effect of Covid-19.
He said through the decision the government will save 200 million Namibia dollars (about $10.8 million) which will be directed to urgent priority areas.
The Namibian president also directed a cap on monthly fuel consumption by public officeholders.
Earlier, Legit.ng reported that Nigeria's former vice president, Alhaji Atiku Abubakar, warned that Nigeria is in dire financial crisis under the Buhari administration.
Atiku who contested but lost the presidency to Buhari in the 2019 presidential election stated this in an article he posted on Linkedin on Tuesday, June 16.
He was reacting to the report that shows whereas Nigeria spent a total sum of ₦943.12 billion in debt servicing, the federal government’s retained revenue for the same period was only ₦950.56 billion, meaning Nigeria’s debt to revenue ratio is now 99%.
“No one should be deceived. This is a crisis! Debt servicing does not equate to debt repayment. The reality is that Nigeria is paying only the minimum payment to cover our interest charges.
The principal remains untouched and is possibly growing,” he lamented.
He continued: “Not only have we squandered our opportunities, we have also squandered the opportunities of our future generations by bequeathing them a debt that they neither incurred nor enjoyed.
“Again, I warn that Nigeria is facing a crisis, and we cannot continue to keep up appearances by taking out more loans to prop up our economy. That will amount not just to robbing Peter to pay Paul, but to robbing our children to pay for our greed!”
An analysis of the Nigerian debt problem shows a bleak future as the Buhari administration continues to erode the achievements of past governments in securing debt reliefs for the country.
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