Borrowing To Accumulate Debt For Next Generations Is Criminal — Obasanjo Tells Buhari Govt
Former Nigerian President Olusegun Obasanjo has reacted to the Federal Government’s decision to seek more loans, despite public outcry over the current administration’s continual borrowing.
In an interview with Channels Television in South Africa, Obasanjo branded the suspected plan to accrue debt for the next generation to pay as criminal.
Obasanjo voiced concern that if President Muhammadu Buhari’s administration fails to service or pay the present debt, it will become a significant burden for future governments.
The president recently asked authorisation from the National Assembly to borrow new funds totaling $4,054,476,863 and €710 million, according to the DAILY POST.
In response, the former president, who feels that borrowing is not an issue, indicated that the challenge would be the use of the borrowed funds as well as the repayment plan or capacity.
He said, “But 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?”
