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  • Updated: 1 month ago

Obasanjo Lashes Out At Buhari's Move For Loan

Obasanjo Lashes Out At Buhari's Move For Loan

Chief Olusegun Obasanjo| Photo Source: Concordia.net

The Former President of Nigeria, Chief Olusegun Obasanjo has lashed out on the federal government's plan to borrow more money.

He described the move as "criminal" and pressing on future generations.

Obasanjo's comments followed after president Muhammadu Buhari requested approval from the Senate seeking for loan.

Ali Ndume, a serving APC senator from Borno State also expressed concerns over the parliament's loans approvals.

The $4,054,476,863 and €710 million is part of the 2018-2020 borrowing plan as requested by the president.

The president of the Senate, Ahmad Lawan read the president's letter saying the request was for "critical project".

In an interview with channels Television, Obasanjo expressed displeasure over the borrowing saying next administration will find it difficult.

He further expressed that it is not the borrowing that is the problem but the inability to pay back.

He stated that, “If you want to build a commercial house and you go and borrow money, and you have 50 per cent of your own money and you borrow 50 per cent and in five years, you pay the 50 per cent that you borrowed. That is a wise thing to do. But if you have to go and borrow money for you to be able to feed yourself and your family, that is a stupid thing to do.”

“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?”

While relating to his tenure in 1990, Obasanjo said his administration spent $3.5 billion in debts that kept growing.

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.”

Before Obasanjo, the public have complained about the borrowing saying it is too much debt burden for a country battling economic growth.

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