Olusegun Obasanjo, the former president of Nigeria, has taken issue with the Federal Government’s incessant borrowing.
President Buhari had requested the National Assembly’s approval only days ago for a loan of $4,054,476,863 and €710 million.
During an interview with Channels Television in South Africa, Obasanjo said it was criminal to accumulate debt for the next generation to pay.
According to him, if current administration fails to service or pay existing debts, it could become a major problem for succeeding administrations.
In addition to saying borrowing is not a problem, Obasanjo said it would be better if the borrowed funds were used to support development and repayment plans were in place.
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; 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.”