- It seems that borrowing is the best available medium for the President Buhari government to deliver on its campaign promises
- Ahmad Lawan, Nigeria's Senate president, has said that this is so because the government cannot rely on taxes
- Lawan explained that presently, revenues and resources are not yielding enough to fund the infrastructural sector
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Abuja - Senate President Ahmad Lawan has opined that raising taxes to generate funds for infrastructural projects in Nigeria at such a time of serious economic constraints is not an option.
Lawan said given the meagre revenues generated locally, the best option is to borrow in a wise and responsible way, The Cable reports.
The Senate boss gave this view on Thursday, June 24, during his conversation with journalists in Abuja after a closed-door meeting with President Muhammadu Buhari.
Lawan said the country is understandably impoverished as a result of low resources and revenues.
He, however, added that the federal government after borrowing, should utilise prudently and economically, and ensure that the projects on which the borrowed funds are used become self-sustaining, The Guardian reported.
The senator noted that another choice the country has is to embark on public-private ventures in the infrastructural sector.
“Our options are really very limited as a country. First, we don’t have the necessary revenues. Nigeria is poor; we shouldn’t deceive ourselves.
“The other option is a public-private partnership. You need to create the environment to attract investors to come into our country; because of the security challenges we face today, not many investors would like to come to Nigeria."
Why Nigeria Needs to Borrow - Finance Minister
Meanwhile, Zainab Ahmed, the minister of finance, budget and national planning, had said that Nigeria had to borrow more than it had planned before the COVID-19 pandemic started.
Ahmed explained the federal government had to take the decision because it needed to still continue to invest in infrastructure despite the damaging effects of the pandemic on the economy.
The minister admitted that Nigeria’s economy was facing a difficult time, saying states must improve their internally generated revenues.