September 29, 2023 2:22 am

Fresh Loan Request: The President can borrow to meet existing obligations – Economic expert


An Economic and financial expert, Chief Richard Harrison has backed the move from President Muhammadu Buhari for a fresh loan request.

Recall that President Muhammadu Buhari had recently forwarded a fresh loan request of $800 million to the National Assembly to service the needs of vulnerable 10.2million households at N5, 000 each.  

The President had said the loan, as part of the administration’s social intervention programme, would stimulate activities in the informal sector; improve nutrition, health, education and human capital development of beneficiary households.

Expressing his concerns and fear towards the loan request, Mr. Ben Akabueze, Director General Budget Office of the Federation, while speaking at the International Conference Centre (ICC) Abuja, during the induction of newly elected lawmakers of the 10th National Assembly, raised the alarm over Nigeria’s borrowing plan, saying the nation, which had one of the lowest Gross Domestic Product (GDP) to debt ratio in the world, was fast exceeding its limited borrowing space.

Reacting to the development, Chief Harrison, a one time Commissioner for Finance in Abia State reminded the Director General Budget Office of the Federation and Nigerians that the President can borrow to meet existing obligations.

He however pointed out that loan limits can be extended or existing debts restructured, provided due process is followed. 

” Government is like a train travelling from Port Harcourt to Lagos through Kaduna. You cannot stop the journey because another driver is taking over at the next stop or station. Drivers come and go but the journey continues”, he buttressed further.

Chief Harrison likened the alarm raised by Akabueze to one telling a Governor to stop paying salaries before leaving office in order not to exceed borrowing limits.

According to him, “The budget Officer raising such alarm is not worth keeping in that job”.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *