Borrowing To Fix Roads Good For Economy, Says Fashola

Borrowing to fix infrastructure is good for the economy, Minister Works and Housing, Babatunde Fashola (SAN), has said.

Speaking in Abuja at NANForum, the flagship interview programme of the News Agency of Nigeria (NAN), he said the country would not make meaningful progress without taking loans to boost infrastructure.

“It is in our interest that government does some borrowing and spends it on investment because that sector contributes to the Gross Domestic Products (GDP) and contributes to employment.

“I do not support irresponsible borrowing so let us be clear; there has to be some sense to this.

“So long as you are borrowing to invest and you are investing in assets then we can have this debate from morning till night and I don’t think I will come out unsuccessful.

“I agree everybody must keep their eyes open about how money is being borrowed, what it is being used for and whether the debt is sustainable.

“We just delivered a rail programme through the Ministry of Transportation; that is a 100-year asset that you have got now.

“So some economists say wait until you gather the money, that’s bad economics,” the minister said.

According to Fashola, many developed countries created super economies through borrowing.

He said the recent loans obtained by the Federal Government would not mortgage the future of Nigerians.

-The Nation