Former President of Nigeria, Olusegun Obasanjo says borrowing to accumulate debt for the next generation is criminal.
Gatekeepers News reports that Obasanjo while reacting to the Federal Government’s plan to source for fresh loans, said it might become a problem for successive administrations if the existing debt is left unserviced or unpaid.
The former President who said borrowing is not a problem added that what could be a problem would be what one is borrowing for and the plan or capacity to pay back.
Obasanjo said, “But if you are borrowing and accumulating debts for the next generation and the next generation after them, it is criminal. What are you borrowing for?
“If we are borrowing for recurrent expenditure, it is the height of folly. If we are borrowing for development that can pay for itself, that is understandable. Then the payment, how long will it take to pay itself?”
The ex-Nigeria leader recalled that during his tenure in 1999, the country was spending $3.5 billion to service debts that kept on increasing.
He said, “When I came into government as elected President, we were spending $3.5 billion to service debts. Even with that, our quantum of debts was not going down.”
The country’s debts have continued to soar as the Federal Government seeks foreign loans to deliver key infrastructural projects.
Six days ago, Gatekeepers News reported that President Muhammadu Buhari wrote to the National Assembly, seeking approval to borrow fresh sums of $4,054,476,863 and €710 million in an addendum to the 2018-2020 borrowing plan.
In the letter, the President explained that owing to “emerging needs”, there is a need to raise more funds for some “critical projects”, while seeking the parliament’s nod to also approve grant components of $125 million.
Senate President Ahmad Lawan read the request letter on the floor of the upper legislative chamber on Tuesday.
Meanwhile, the National Assembly in July approved the sums of $8.3 billion and €490 million loans contained in the initial 2018-2020 borrowing plan.
