Obasanjo: Borrowing To Accumulate Debt For Next Generations Is Criminal

Obasanjo: Borrowing To Accumulate Debt For Next Generations Is Criminal

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.

iexclusivenews Nigeria reports that 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 expressed concern that if President Muhammadu Buhari’s administration fails to service or pay the existing debt, it will become a huge problem for future governments.

This online news outlet recalls that the president asked consent from the National Assembly a few days ago to borrow new funds totaling $4,054,476,863 and €710 million.

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.

“However, borrowing and collecting debts for the next generation and the generation after them is criminal,” he warned. For what purpose are you taking out a loan?

“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?”