Borrowing To Build Up Debt For Next Generations Is Criminal – Obasanjo

He stated that if the present debt remains unserviced or unpaid with the aid of the cutting-edge management, it would emerge as a large trouble for successive governments..”

Former Nigerian President, Olusegun Obasanjo, has lamented approximately the regular borrowing of loans via the government.

Recall that handiest days ago, President Buhari requested the approval of the National Assembly to borrow $four,054,476,863 and €710 million..”

Obasanjo, while speaking to Channels Television in South Africa, stated it’s miles crook to accumulate debt for the next technology to pay..”

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He stated that if the present debt remains unserviced or unpaid through the contemporary management, it’d emerge as a big trouble for successive governments.

Obasanjo delivered that borrowing isn’t a problem, however, he stated it might be better if the borrowed price range had been used for development and there’s a plan or capacity to pay lower back.

He said: If you want to build a industrial residence and also you move and borrow money, and you have 50 according to cent of your very own money and you borrow 50 consistent with cent and in 5 years, you pay the 50 per cent which you borrowed. That is a wise component to do. But if you have to move and borrow money for you so one can feed yourself and your circle of relatives, that could be a stupid aspect to do.

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“So, if we are borrowing for recurrent expenditure, it’s miles the height of foolery. If we’re borrowing for improvement which can pay itself, this is understandable; then how long will it pay itself? But we’re borrowing and gathering debt for the subsequent generation and the following technology after them, it’s far crook, to position it mildly. What are we borrowing for?

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“When I got here into government and turned into elected President, we had been spending $three.5bn to carrier debt, and even with that, our quantum of debt became no longer going down..”