The $1bn loan to fight insurgency

In a bid to reinvigorate the ongoing war against insurgency in the country, President Goodluck Jonathan last week requested the National Assembly to urgently approve a $1 billion external loan to strengthen our security agencies in the battle against insurgents. The loan, according to the president, will be used to upgrade equipment, training and logistics of the Nigerian Armed Forces and other security services, so that they can confront the insurgents more forcefully.
Coming on the heels of the over N988 billion allocated to Defence in the 2014 Appropriation on account of the Boko Haram insurgency, this request from the president has been generating ripples in the polity. Already, calls have been made in certain quarters for the government to account for the funds so far allocated to the prosecution of the war against terror before seeking more funds, either internally or externally,
for the assignment. The argument has also been made that what the battle against insurgency needs at this time is not so much funds, but fresh ideas and strategies, as the huge allocations to Defence in recent years have failed to stop the problem.
Yet, others have expressed suspicions that the loan could end up being used for other things. The widespread negative perception of the quest for this loan is, undoubtedly, symptomatic of the unfortunate loss of faith in the nation’s leaders and the likelihood that they will act in the best interest of the country, especially where huge sums such as the $1 billion loan being sought by the president are involved.
Considering the magnitude and ferociousness of the insurgency in the country, however, it is not in doubt that the government actually needs more money to strengthen the war against terrorism. The Nigerian military and other security agencies need to be better funded to have a chance of making a headway in this fight. It is necessary to properly equip the military and attend to the welfare of all security agents involved in the war to achieve better results. It is time for Nigerians to stop living in denial and insisting that all is well with the prosecution of the war so far.
It will be recalled that Governor Kashim Shettima of Borno State had earlier in the year openly declared that the insurgents are much better equipped and motivated than our military. Although he was pilloried at that time for what many people considered an unpatriotic stance, the reality is that our Armed Forces need to be better equipped. The request for this loan is, therefore, a confirmation that a lot more still needs to be done to make our military a strong fighting force.
The question, then, is not whether our military needs more funds to improve their capacity, but how best to source the money. Must we take a loan to fight insurgency? Ordinarily, credit facilities should be taken for self-sustaining projects that can be used to repay them. In addition, but for the    failure to block wastages and corruption that have become conduit pipes for siphoning our resources, the country should be able to afford this $1 billion that is needed to fight insurgency.
External borrowing, with its attendant unfavourable conditions, is unhealthy for Nigeria. Already, the economy is saddled with a high debt burden, both foreign and domestic. Available statistics show that as at January this year, our domestic debt stood at N8.67 trillion and external one at N1.37 trillion. Interest on loans tend to balloon at astronomical rates, especially if   repayment schedules are not strictly adhered to, and Nigeria must be careful not to once again become entangled in a debt trap.
A better alternative for the country would be to source the funds needed for this campaign locally instead of externally, because of the harsh conditions attached to foreign loans. Government should find creative ways to raise the fund internally.  Our foreign debt burden is already high. There is no need to add to it.
We, however, urge the National Assembly to take a dispassionate look at the president’s request and treat it with the urgency it requires. This is not the time for partisanship or politicking. National interest and patriotism should guide their decision on this matter. The legislators need to ask relevant questions on the possibility of sourcing the needed sum in the country.
If the loan must be taken at all, they must seriously interrogate the conditions attached to it and the way it will be disbursed to ensure that Nigeria is not shortchanged in any way. The media and civil society organisations also have important roles to play in the event that the loan is taken. They must insist on transparency and judicious use of the money.
One fact that this quest for a loan to fight insurgency has brought into bold relief is that we cannot afford this war against insurgency. Government must, therefore, find ingenuous ways to end this terrorism. We also admonish the sponsors of terrorism in the country to have a rethink and end this campaign of terror against their fatherland.