Why FG can borrow from now till eternity – APC’s Adamu

  • The federal government can borrow as much as possible if the borrowed funds are used to develop the country
  • This was the opinion of Abdullahi Adamu, the national chairman of the ruling APC, on Monday, August 15
  • Adamu pointed at countries like the US, UK, France, and Canada which borrow to build infrastructure, and noted that Nigeria should not be an exception

In the opinion of Abdullahi Adamu, the national chairman of the All Progressives Congress (APC), the federal government under President Muhammadu Buhari is free and right to keep borrowing for as long as it should.

During Adamu’s conversation with Daily Trust on Monday, August 15, he said countries like the US and the UK borrow funds from international financial institutions to build and develop infrastructure.

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Buhari, Adamu
Adamu said top countries of the world borrow
(Photo: Buhari Sallau)
Source: Facebook

He was quoted to have said:

“I remember a programme we had here, I told you and I thought you believed me that I have no quarrel, issues with government borrowing. Government can borrow from here to eternity.

“The American government borrows, the Canadian government borrows, the United Kingdom borrows, France borrows money from the World Bank and such other institutions.”

However, the APC boss said what he will have issues with is if the government fails to use the borrowed for the intended purpose.

Speaking further, he said Nigerians need to give credit to the current administration for the fact that crude oil is the country’s main source of revenue.

His words:

“Nigeria is no exception, what I quarrel with is if the money is not used for a purpose and the infrastructure we are developing across the country is from this source.

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“You also have to appreciate the fact of the level of revenue accruing to the government, oil is the main thing… We want to see how best we can diversify. These issues affecting the revenue accruing to the government are not our making no matter how good we are, they happen.”

Nigerian government borrows N2.45 trillion from CBN, World Bank warns of existential threat

Meanwhile, the total borrowing from the Central Bank of Nigeria by the government via Ways and Means Advances increased from 17.40 trillion as of December 2021 to N19.9 trillion in June this year.

A media report cited CBN data as saying that this indicates that the federal government borrowed N2.45 trillion from the Emefiele-led CBN in six months.

CBN debt not part of national debt stock

The 19.9 trillion owed CBN is not part of Nigeria’s total debt stock which is at 41.60 trillion as of March 2022, a Debt Management Office said.

Source: Legit.ng

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