Nigeria former President, Olusegun Obasanjo has criticised the manner the present administration is borrowing, especially for recurrent expenditure, describing it as ‘foolish’.
In a video interview posted on Channel’s Television Facebook page, Obasanjo also said that borrowing and accumulating debt for the next generations to come is criminal.
Nigeria current debt stock stood at N35.5 trillion by end of June this year while the country also spent N1.03 trillion on debt service obligations in the first quarter of 2021.
In the interview, the ex-president said “it is criminal, to put it mildly,” for the present administration to be accumulating debt for the next generation and the one to come.
“If you want to build a commercial house and you go and borrow money, and you have 50 percent of your own money and you borrow 50 percent and in five years, you pay the 50 percent 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 $3.5 billion to service debt, and even with that, our quantum of debt was not going down.”
The present administration has accumulated a total of N21trillion since it came to power in 2015.