The Federal Government’s way of taking loans was frowned upon by former President of Nigeria, Olusegun Obasanjo. According to the former president, the loan is ‘foolish.’
Fast news reports that Olusegun Obásanjo said that borrowing and accumulating debt for the next generations are criminals in a video interview posted on the Channel’s Facebook page.
He said, “When you build a commercial house and you buy money and have 50% of your own money and buy 50 percent, you pay the 50% you bought in five years. It’s wise to do that. However, if you have to buy money for yourself and your family to feed that is foolishness.
“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.”
The administration of the President, Major General Muhammadu Buhari (retd.), has borrowed a total of N21tn within six years.
Data from the Debt Management Office showed that at the end of March 2021, Nigeria’s public debt hit a total of N33.12tn, which means in the last six years under the President, the country’s debt rose by N21tn.
As of the end of June 2015, one month after the present regime came into power, the country’s debt profile stood at N12.12tn.
It also means that the country’s debt profile has risen by 173.27 percent within the six-year period.
Nigeria’s total public debt stock includes the debt stock of the Federal Government, the 36 states, and the Federal Capital Territory.
However, most of the debts were contracted by the Federal Government.