Former President Olusegun Obasanjo, has kicked against the accumulation of debt by the administration of President Muhammadu Buhari, describing it as a criminal act.
According to Obasanjo, who spoke at an event in South Africa, accumulating debts for future generations will become a problem for future generations.
“FG was accumulating debts for the next generation, which is a criminal act”, he said.
Noting that borrowing is not in itself a problem, Obasanjo said the problem with such massive borrowing is when there are no specific plans or the capacity to pay back
“If you want to build a commercial house and you go and borrow money, and you have 50 percent of your own money, and you borrow 50 percent and in five years, you pay the 50 percent that you borrowed. That is a wise thing to do,” he said.
The former President however said it was the height folly to borrow for recurrent expenditure as any nation, or even as an individual.
“But if you have to go and borrow money for you to be able to feed yourself and your family, that is a stupid thing to do.
“So, if we are borrowing for recurrent expenditure, it is the height of folly. If we are borrowing for development that can pay for itself, that is understandable. Then the payment, how long will it take to pay itself?
“But we are borrowing and accumulating debt for the next generation and the next generation after them, it is criminal, to put it mildly. What are we borrowing for”, he said.