Former Nigerian President, Olusegun Obasanjo, has condemned the federal government’s decision to seek for another fresh loan amid economic crisis. ayokinews.com reports
Speaking to Channels TV in South Africa, Obasanjo stated that the accumulation of foreign debt for the coming generation to pay was ‘criminal’.
He warned that if the previous debts aren’t fully settled, it would be a huge financial burden for the next administration.
It should be recalled that the federal government earlier sent to the National House of Assembly a fresh loan of $4,054,476,863 and €710 million for approval.
Obasanjo who noted that borrowing of funds isn’t a problem, however, stated that the challenge would be the proper utilization of the borrowed fund and the plan or capacity to repay the loan.
He 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?”