The Chairman, Senate Committee on the Army, Senator Ali Ndume, has advised President Muhammadu Buhari’s administration against spending foreign loans which the nation is getting from international lending agencies on recurrent expenditure like salaries and overhead.
The former senate leader, who is representing Borno South Senatorial District in the National Assembly, gave the advice in a statement he personally signed on Sunday on the Democracy Day anniversary.
The country’s current debt profile, according to the Debt Management Office, hits N33.10trn as of the end of the first quarter of 2021. This represents an increase of N191bn compared to the N32.91trn recorded in December 2020.
Ndume said there was nothing wrong with a country taking foreign loans, but that such loans should be spent to boost productivity, like agriculture and the revival of moribund industries
He said the loans meant to provide infrastructure should be obtained from international lending agencies with favourable conditions.
According to him, government should ensure that such infrastructures generate revenue through toll plazas.