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Buhari Commended For Prudent Use Of External Loans, Says Ex-Minister

Published

11 months ago

Jan 31, 2024.

Eko Hot Blog reports former President Muhammadu Buhari has received commendation from the immediate past Minister of State for Budget and National Planning, Clement Agba, for his judicious utilization of external loans to fund infrastructural projects in Nigeria.

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In a defense of Buhari’s administration, Agba, an economist, refuted criticisms of the former president’s reliance on external borrowing, asserting that it was instrumental in the development of crucial infrastructure across the country.

Agba, who is also a governorship aspirant in Edo State under the All Progressives Congress (APC), made these remarks after submitting his Expression of Interest and Nomination forms at the party secretariat in Abuja on Wednesday.

He emphasized the significance of discerning the purpose and conditions of borrowing, stating, “What are you borrowing for? If you are borrowing for consumption, you are not going to be able to pay back.”

Agba highlighted the favorable terms of the loans secured by Buhari’s administration, noting low interest rates and extended repayment periods.

“These were very long-term loans with good conditions,” he affirmed. “And the highest of it, if I remember, was about 2.5 per cent. You also have a moratorium of between 5 to 20 years to pay back, depending on what it is.”

Regarding the economic implications, Agba underscored the benefits of borrowing at lower rates compared to prevailing inflation rates.

“Is it not better to take the money and pay at 2.5 per cent whereas the inflation rate is at 26.6 per cent? Is that not a dash?” he questioned.

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In conclusion, Agba called for recognition and commendation of Buhari’s administration for its prudent management of external loans, stating, “So, borrowing is not a sin. I think the former president should be commended.”

Agba’s remarks reflect a broader discourse on the economic policies of Buhari’s tenure, highlighting the complexities of borrowing for infrastructural development amidst fiscal challenges.

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