President Muhammadu Buhari says his administration borrowed in order to fund the infrastructure development and create wealth for Nigerians.
President Buhari made this claim at the virtual commissioning of the Second Niger Bridge, which has now been named after him, two other bridges as well as four other projects in different parts of the country.
Buhari’s explanation came on the heels of bashing his administration is receiving over the alleged heavy borrowing.
Recall that financial experts, the opposition elements among others have criticized the Buhari’s administration over the country’s debt profile, which they argued could negatively affect subsequent administrations.
But in the midst of the criticisms, the Presidency has defended and adduced reasons for the borrowing, contending that that borrowing for infrastructure development is a practice by governments all over the world, including the developed economies.
But in the midst of the criticisms, the Presidency has defended and adduced reasons for the borrowing, contending that that borrowing for infrastructure development is a practice by governments all over the world, including the developed economies.
The Debt Management Office (DMO) had warned in January that the incoming administration might be inheriting a public debt worth N77 trillion when it is sworn in next Monday.
However, speaking on the reason for investing in infrastructure development, Buhari said it was all targeted at reducing poverty, economic development, creating more employment and ultimately leading Nigerians to prosperity.
The President in a statement issued by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, defended the choice of borrowing by his administration saying, “we do not act on infrastructure by accident. It has been a deliberate choice for our government as a tool to fight poverty, to create economic growth and employment and to open the path of prosperity for our people.”
According to him, “As we look at the debt profile, I urge us to also look at the assets and investment profiles, some of which were paid for by debt and some by investment income.
“In 8 (Eight) years, I am proud to say that we have doubled Nigeria’s stock of infrastructure to GDP from about 20% to over 40% and that is no small undertaking.
“The projects that we hand over today apart from others such as rail, sea and airports, gas pipeline projects that have been previously completed, symbolise our country’s sharp focus on delivering prosperity,” he said.
