News By Borrowing To Accumulate
Debt For Next Generations Is
Criminal – Obasanjo
Former Nigerian President, Olusegun
Obasanjo, has lamented about the constant
borrowing of loans by the government.
Recall that only days ago, President Buhari
requested the approval of the National
Assembly to borrow $4,054,476,863 and
€710 million.
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Obasanjo, while speaking to Channels
Television in South Africa, said it is
criminal to accumulate debt for the next
generation to pay.
He said that if the existing debt remains
unserviced or unpaid by the current
administration, it might become a huge
problem for successive governments.
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Obasanjo added that borrowing is not a
problem, however, he said it would be
better if the borrowed funds were used for
development and there is a plan or capacity
to pay back.
He said: 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.
“So, if we are borrowing for recurrent
expenditure, it is the height of foolery. If
we are borrowing for development that can
pay itself, that is understandable;
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then how
long will it pay itself? But we are
borrowing and accumulating debt for the
next generation and the next generation
after them, it is criminal, to put it mildly.
What are we borrowing for?
“When I came into government and was
elected President, we were spending $3.5bn
to service debt, and even with that, our
quantum of debt was not going down.”