The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has said that the federal government should always tie its borrowings to a specific projects especially income generating assets inorder to reduce accruing more debt.
The Institute argued that the reason why we are having difficulties servicing our debt is because most of those loans were used for consumption and not for investing in income generating asset like refinery.
The ICSAN President, Mr Bode Ayeku while Speaking at a media parley in Lagos said;
“The reason why we are having challenges with our debt profile is because most of those loans were used for consumption.”
“We could not see tangible assets. That was why I said the government should have dedicated loans for a specific project.”
‘‘This idea of saying ‘ we are borrowing X million naira generally for consumption” won’t work. If it is for maintenance or road construction, you can track that.”
“If you borrow to build a refinery, it is an asset, an income generating asset. If we have refineries that are working and we are able to produce locally, whatever profit the private sectors are making, the government will be able to make it too”.