Nigeria’s GDP Can Service More Loans Than It Is Taking – FG

FG has defended its plan of taking more loans to sponsor some projects ongoing in Nigeria.

Presidential spokesman, Femi Adesina recently came out to say that there is nothing wrong in taking loans because our nation still has more capacity to accommodate such.

According to him, the loans are being used for the projects they were borrowed for and the huge debt the country is owing is mostly the fault of former governments.

Femi added that the present figures are within the capacity of Nigeria’s Gross Domestic Products (GDP) to service and repay.

His words, “Don’t forget that the International Monetary Fund (IMF) came out to say that Nigeria’s economy has the capacity to absorb more loans and that Nigeria is taking below what its GDP can afford. IMF said it and it is on record. Nigeria’s GDP can service more loans than it is taking. That is a vote of confidence in Nigeria’s ability to repay the loans it is taking.

“Taking loans to use for development is not a crime. But taking loans to steal and pocket as we used to have it in this country is what is criminal. You will find out that even the profile of the loans, Nigerians don’t know it.

“Even former president Olusegun Obasanjo gave a lecture where he quoted a figure about what Nigeria owes. The Debt Management Office (DMO) had to come out to correct him. I think he quoted something in the region of $90b or $100b debt.

“The DMO office came to say all that this administration has taken is a little over $20b. The DMO also told us what the Peoples Democratic Party (PDP) government left as loans and debt. So, a lot of commentators don’t know the correct profile.

“The loans will be used for development, for provision of infrastructure, open up and stimulate the economy. These loans are good because they are used for development and that is what this administration is doing. The loans are within tolerable limit.

“So, those who are making noise about loans, particularly the outgone government, are only shedding crocodile’s tears because under them, they took loans and pocketed the money and we didn’t see what they did with the loans. But Nigeria is now taking loans and Nigerians can see what the government is doing with the loans.”