Lawan: To Fund Infrastructural Projects, Nigeria’s Only Option Is To Borrow

Senate President Ahmad Lawan says the only option the country
has to finance infrastructural development across the country is to
obtain loans.

Speaking with journalists at the national assembly on Friday,
Lawan said the country cannot raise more revenue through taxes
because of the prevailing economic situation.

On Thursday, the Debt Management Office (DMO) said Nigeria’s
total public debt stock hit N33.10 trillion as at the end of the
first quarter of 2021.

The senate president said it is the national assembly’s job to
ensure that the loan requests by the executive are for essential
projects.

“What we have to do is to raise funds and there are so many ways
to do this. Are we going to raise taxes? Can we afford to raise
taxes in the current situation for us to fund the infrastructure?
And it is a must to have infrastructure like roads, railways and so
on,” he said.

“Definitely, one option is out, and that is not to do anything.
We cannot afford not to construct roads and other social amenities
that will boost our economy. We cannot afford to raise taxes.

“The only option is to borrow, and to borrow responsibly. Before
we borrow, we have to identify those essential infrastructure that
we need to provide for our economy to grow.

“Permit me to have an opinion. It is a necessary burden, because
to do otherwise will be irresponsible of any government to keep an
economy that is stagnated.”

Lawan said the relevant committees in the national assembly are
already embarking on oversight functions to ensure that loans are
properly utilised.

“Since we don’t have a better option than to accept the request,
we approved the loans. Our committee on foreign and domestic debts
went to see the areas covered in the loans,” he said.

“We have also started oversight functions to ensure judicious
utilisation of the loans in the overall interest of Nigerians.”

Senate President Ahmad Lawan says the only option the country
has to finance infrastructural development across the country is to
obtain loans.

Speaking with journalists at the national assembly on Friday,
Lawan said the country cannot raise more revenue through taxes
because of the prevailing economic situation.

On Thursday, the Debt Management Office (DMO) said Nigeria’s
total public debt stock hit N33.10 trillion as at the end of the
first quarter of 2021.

The senate president said it is the national assembly’s job to
ensure that the loan requests by the executive are for essential
projects.

“What we have to do is to raise funds and there are so many ways
to do this. Are we going to raise taxes? Can we afford to raise
taxes in the current situation for us to fund the infrastructure?
And it is a must to have infrastructure like roads, railways and so
on,” he said.

“Definitely, one option is out, and that is not to do anything.
We cannot afford not to construct roads and other social amenities
that will boost our economy. We cannot afford to raise taxes.

“The only option is to borrow, and to borrow responsibly. Before
we borrow, we have to identify those essential infrastructure that
we need to provide for our economy to grow.

“Permit me to have an opinion. It is a necessary burden, because
to do otherwise will be irresponsible of any government to keep an
economy that is stagnated.”

Lawan said the relevant committees in the national assembly are
already embarking on oversight functions to ensure that loans are
properly utilised.

“Since we don’t have a better option than to accept the request,
we approved the loans. Our committee on foreign and domestic debts
went to see the areas covered in the loans,” he said.

“We have also started oversight functions to ensure judicious
utilisation of the loans in the overall interest of Nigerians.”