Former Nigerian President, Olusegun Obasanjo, has lamented in regards to the fixed borrowing of loans by the federal government.
Recall that solely days in the past, President Buhari requested the approval of the Nationwide Meeting to borrow $4,054,476,863 and €710 million.
Obasanjo, whereas talking to Channels Tv in South Africa, mentioned it’s criminal to build up debt for the next era to pay.
He mentioned that if the prevailing debt stays unserviced or unpaid by the present administration, it’d turn out to be an enormous downside for successive governments.
Obasanjo added that borrowing will not be an issue, nevertheless, he mentioned it will be higher if the borrowed funds had been used for improvement and there’s a plan or capability to pay again.
He mentioned: If you wish to construct a business home and also you go and borrow cash, and you’ve got 50 per cent of your individual cash and also you borrow 50 per cent and in 5 years, you pay the 50 per cent that you just borrowed. That could be a clever factor to do. But when you must go and borrow cash for you to have the ability to feed your self and your loved ones, that could be a silly factor to do.
“So, if we’re borrowing for recurrent expenditure, it’s the peak of foolery. If we’re borrowing for improvement that may pay itself, that’s comprehensible; then how lengthy will it pay itself? However we’re borrowing and accumulating debt for the subsequent technology and the subsequent technology after them, it’s prison, to place it mildly. What are we borrowing for?
“After I got here into authorities and was elected President, we had been spending $3.5bn to service debt, and even with that, our quantum of debt was not taking place.”