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Nothing Wrong With Nigeria Taking More Loans – Presidency

Nigerian government at the weekend said there was nothing wrong in taking more loans to finance specific projects that would benefit the generality of Nigerians.

It has howevered urged critics of its efforts in borrowing to develop the country to stop bothereing themselves.

Presidential spokesman, Femi Adesina, while speaking in a radio programme on Sunday, assured Nigeria has enough capacity to accommodate more loans.

Adesina who spoke while featuring on Southwest Political Circuit, a popular political interview programme on Ibadan-based radio station, Fresh F.M, called from his Aso Rock office to take questions on aspects of COVID-19 management and economic issues.

He said that there was no need for Nigerians to raise concern about the country’s rising debt profile because the President Muhammadu Buhari administration is applying loans to the specific projects they are meant for.

Although he pointed out that the huge debt, which the country is owing, was largely borrowed by previous administrations, he stressed that current figures were within the capacity of the country’s Gross Domestic Products (GDP) to service and repay.

Adesina said: “Don’t forget that the International Monetary Fund (IMF) came out to say that Nigeria’s economy has the capacity to absorb more loans and that Nigeria is taking below what its GDP can afford. IMF said it and it is on record. Nigeria’s GDP can service more loans than it is taking. That is a vote of confidence in Nigeria’s ability to repay the loans it is taking.

“Taking loans to use for development is not a crime. But taking loans to steal and pocket as we used to have it in this country is what is criminal. You will find out that even the profile of the loans, Nigerians don’t know it. Even former president Olusegun Obasanjo gave a lecture where he quoted a figure about what Nigeria owes. The Debt Management Office (DMO) had to come out to correct him. I think he quoted something in the region of $90 billion or $100 billion debt.

The DMO office came to say all that this administration has taken is a little over $20billion. The DMO also told us what the Peoples Democratic Party (PDP) government left as loans and debt. So, a lot of commentators don’t know the correct profile.”

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Written by PH

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