Former President Olusegun Obasanjo has described as an act of criminality the practice of government borrowing money and accumulating debts for next generation and the generation after them to pay.
Obasanjo spoke in an interview broadcasted by Channels Television yesterday on the borrowing spree of the Federal Government led by President Muhammadu Buhari.
President Muhammadu Buhari had increased Nigeria debt profile from 12.12 trillion naira in 2015 when he first came into power to 33.107 trillion naira as at March 31, 2021; according to Nigeria Debt Management Office.
Former President Obasanjo in the interview said it is a stupid thing for federal government to borrow money for recurrent expenditure or for a person to borrow money so that he or she will be able to feed self and family.
If you want to build a commercial house, and you go and borrow money, and you have 50 percent of your own money, and you borrow 50 percent and in five years you will pay the 50 percent you borrow, that’s right thing to do.
But if you have to go and borrow money, for you to be able to feed; you and your family, that is stupid thing to do.
So, if you are borrowing for recurrent expenditure, it is height of folly.
If you are borrowing for development that can pay itself, good, that is understandable.
Then, paying itself, how long does it take to pay itself.
But if you are borrowing and you are accumulating debts for the next generation, and the next generation after them, it is criminal.
What are we borrowing for.
When I came in to goovernment as elected President, we were spending 3.5 billion dollars to service debt and even with that, our quantum of debt was not going down.former President Olusegun Obasanjo said.
It would be recalled President Muhammadu Buhari presented a request for approval, fresh loans of 4 billion dollar and 710 million euro before National Assembly few days ago.
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