Minister of Information and Culture, Lai Mohammed, has said that there is nothing bad in borrowing Money, provided the funds are invested in capital projects to improve and develop the country, rather than services or consumption.
The Minister said this on Saturday August 15, 2020, while speaking with journalists after he inspected the Lagos-Ibadan rail line along side Minster of Transportation, Rotimi Amaechi.
Mohammed stated that the government did expenditure like most Nigerians believe, that the funds are used for infrastructures ; rails , power, bridges etc.
“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 thing 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
Minster of transportation Rotimi, appealed to the national assembly to approve $5.3 billion Chinese loan request, to enable the Government execute the Ibadan-Kano standard gauge rail line.
Amaechi said $1.6 billion is being used in the funding of the Lagos-Ibadan standard gauge rail line and the stations.
However, Nigerians continues to express fear, over President Buhari’s Government increasing debt profile in China and other international countries.