Connect with us

Politics

Stop accumulating debts for future generations, Obasanjo tells Buhari

Published

on

Former President Olusegun Obasanjo, has warned President Muhammadu Buhari to stop taking external loans as his administration is accumulating debts for the future generations.

Obasanjo who spoke on Sunday at an event in South Africa, faulted the federal government’s plan to source fresh external loans, insisting that if the existing debts are left unserviced or unpaid, it might become a problem for successive governments.

He added that the “FG was accumulating debts for the next generation, which is a criminal act.”

While noting that borrowing is not in itself a problem, the former president said that the problem with such massive borrowing is when there are no specific plans or the capacity to pay back

“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,” he said.

Read also: Obasanjo warned us Buhari is ‘unfit to rule’ —Oyinlola

However, the former leader said borrowing for recurrent expenditure is the height of folly for any nation, or even as an individual.

“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 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?

“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?”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now