Former President Olusegun Obasanjo has criticized President Muhammadu Buhari’s borrowing spree.
Speaking to Channelstv at a sideline of a programme In Durban, South Africa, at the weekend, Obasanjo said borrowing for recurrent expenditure is not the best.
He said, “ if you want to build a commercial building and you have 50 percent of the expenditure and borrow 50!per cent, in five years you’ll be able to pay back. But if you borrow to feed your family, that’s stupid thing to do. If you are borrowing for a recurrent expenditure, it’s height of foolery. If you borrow for Development that will be able to pay itself, it’s good, but if you accumulate debt for the next generation and generation yet unborn, that’s criminal.”
The leader of the Economic Advisory Group of President Buhari, Prof Doyin Salami has also criticized the latest request to the senate to borrow $4billion and €710 million from bilateral and multilateral agencies, saying it’s not sustainable.
He, however, advised that Nigeria should focus on low hanging fruits, by selling some of the federal government assets to raise fund.
Also, the Socio-Economic Rights and Accountability Project, SERAP, has called on the National Assembly not to approve the latest request to borrow more.
Chairman, Senate Committee On The Army, Senator Alli Ndume has also criticized his colleagues for hasty approval and not scrutinizing request from executive to borrow in the face of dwindling revenue.