An economist has backed the Federal Government’s proposed borrowing programme, saying loans can help drive economic growth when properly invested in productive sectors.
The economist argued that borrowing should not be judged solely by the amount involved but by how effectively the funds are deployed to improve the economy.
He stressed that investments in infrastructure, education, healthcare, energy and transportation could generate long-term economic benefits, create jobs and strengthen business activities.
The Federal Government is seeking approval for a proposed $21.7 billion external financing programme to fund major development projects across the country.
According to TheCable, Finance Minister Taiwo Oyedele said the proposed borrowing would support critical infrastructure and other priority sectors.
The economist also cautioned against diverting borrowed funds to recurrent expenditure, insisting that loans should finance projects capable of generating economic returns.
In a report by BusinessDay, Eze Onyekpere, Lead Director of the Centre for Social Justice, explained that borrowing should be tied to capital projects and investments that improve the country’s productive capacity.
The proposed financing includes major infrastructure projects such as the Sokoto-Badagry and Lagos-Calabar highways, alongside the Kano-Kaduna railway.
The growing debate over Nigeria’s borrowing plans highlights the need for transparency, accountability and proper project execution.
While external loans can provide funding for development, their long-term value will depend on whether the projects deliver measurable economic benefits.
Sources: BusinessDay
