Economist Describes Nigeria’s Reason For Borrowing As ‘Silly’

Channels Television  
Updated May 21, 2013

An economist, Henry Boyo, has described the reason given by the Federal Government of Nigeria for borrowing more money in order to boost infrastructural projects, as silly.

Mr. Boyo who was a guest on Channels Television programme, Business Morning, warned that the country may be deceived into more borrowing until it falls into another “debt-trap”.

He said the nation should be reminded that years ago, Nigeria was said to have under borrowed, which led to a debt-trap.

“What is the cause of our borrowing? Why are we accumulating debts so rapidly?” he asked.

He said that over the years, Nigeria has borrowed for the same reason but there have been no visible results, adding that the transportation and education systems, health services are decrepit and the “cost of living continues to spiral”.

He pointed out that the country has other revenue sources such as the Federal Inland Revenue Service (FIRS) as well as the Customs, which jointly raked in about N6 trillion in 2012.

“The total revenue streams have not been appropriately compounded,” he added.

He also talked about the Excess Crude Account which “the three arms of government divide among themselves” whilst still maintaining a deficit, which they are now borrowing to cover for.

“If somebody tells you something absolutely silly… you would question it,” he declared.