Senator Adams Oshiomhole, representing Edo North Senatorial District, has defended the Federal Government’s borrowing plan, saying the focus should be on what borrowed funds are used for rather than borrowing itself.
Oshiomhole said borrowing was a common practice among countries, arguing that investments in infrastructure could support sustainable economic growth and generate income to repay loans.
Speaking during an interview on ARISE News on Friday, the former Edo State governor responded to concerns over President Bola Tinubu’s proposed external borrowing plan and criticism of the administration’s failure to provide sufficient details about the projects.
Oshiomhole said the Senate would examine the borrowing request and its intended purpose before deliberating on the proposal.
He said: “Government decision to borrow about 200 billion US dollars. And no, sorry, 22 billion US dollars. And I think it was something below Euro.
“The letter says that this money should be used for various infrastructure necessary to consolidate a solid foundation for sustainable growth and development.
“I’m convinced that no, you can’t have a sustainable growth and development without solid infrastructure. But I hear you talking about the details.”
The senator explained that the borrowing request had been referred to the Senate Committee on Foreign Debt and Local Debt for consideration.
According to him, the committee would examine the request, its objectives and the proposed use of the funds before the matter returned to the Senate plenary for debate.
He said: “Now, those details in line with the rules of the Senate. This letter has been referred to the Senate Committee on Foreign Debt and Local Debt. And then we go through the details of the request, the purpose for which each, I mean, this sum should be spent.
“And thereafter, the matter will come back to the plenary of the Senate. And those details will be subject of debate and deliberation.
“But if that happens, I cannot tell you I know anything more than what was contained in that letter.”
Oshiomhole said he could not provide further information about the proposed projects until the Senate committee had examined the request and engaged with the Ministry of Finance.
He said: “I think there will be no benefit trying to speak beyond this because we have to disclose the details after the committee has had the opportunity of looking into it and interacting or interfacing with the Ministry of Finance.”
However, the senator maintained that borrowing itself was not necessarily a problem, insisting that the purpose of the loan should determine whether it was justified.
He said: “But in principle, I believe that every country borrows. And the real issue is borrowing to do what?
“If you are borrowing to feed, many will say, myself inclusive, that that would be wasteful.
“If you borrow to build a house and people can see the building, then that is not wasteful because in paying back, the building will be able to generate income on its own.
“So I think we should be speaking more about borrowing to do what? It is that what we need to speak to, not the fact of borrowing. There is nothing strange in it.”
Oshiomhole cited increasing government debt across major economies, saying Nigeria was not alone in borrowing to finance its activities.
He said: “In all the world economies, I mean, I have listened to a lot of foreign news channels, et cetera.
“From London to Washington, government debts are increasing for a variety of reasons.
“So what matters, therefore, is why are you borrowing to do what? Not the fact of borrowing.
“There is nothing wrong with that.”
Faridah Abdullahi
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