The Minister of Information and Culture, Lai Mohammed, has said that there is nothing bad in borrowing, provided the funds are invested in infrastructure rather than services or consumption. This is coming in the midst of continual worries about how the government is borrowing funds. Nigerians have expressed worries of debt and how they will be paid back.
The media aide, Segun Adeyemi, to Lai Muhammad released a statement to that effect on Saturday, August 15, while speaking with journalists after he and Rotimi Amaechi, minister of transportation, inspected the Lagos-Ibadan rail line.
In the address he said:
“There is no better way to answer Nigerians as to what we have done with the money we have borrowed than this trip. On this trip, you have seen first hand the stations being constructed, the rail lines, and the people who are working on the projects.
Rather than arguing with critics, we opted to allow you (journalists) – the ears and eyes of Nigerians – to come and see for yourselves what we are doing with the money we are borrowing.
We didn’t borrow money for services or overhead expenditure. We borrowed money for capital projects: rail; roads; bridges; power – infrastructure generally.
There is nothing bad in borrowing, provided the funds are invested in infrastructure, especially when it will create jobs, create an enabling environment for the economy” he said
On his part, Amaechi said $1.6 billion is being expended on the Lagos-Ibadan standard gauge rail line and the stations.
He appealed to the national assembly to approve a $5.3 billion Chinese loan request to enable the government execute the Ibadan-Kano standard gauge rail line.