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Analysts Express Concern Over FG’s $9.3 billion External Loan Proposal

By on December 10, 2012

In view of the decision by the Federal Government to push for  a $9.3 billion  loan from the International community, economic experts and policy analysts have expressed their fears over the decision.

Debt Crisis in the early 80s was  part of the reason why Nigeria’s economy had to go through rigorous reform proposed by the International Monetary Fund when the Nation could not manage its debt situation.

The Loan which according to Finance  Minister Dr Ngozi Iweala in her presentation to the Senate Committee on ‘Debts and Foreign Loan’, stressed that the loan was designed to fund the vast infrastructure projects in the Country.

Odilim Enwegbara a Financial expert said he was concerned that the Government was once again entering the cycle of foreign debt, and was of the view that when unnecessary loans are taken it plunges the Nation into another bondage of Debt.

Greece and Spain are both experiencing  the heat of the Debt crisis, because of corruption and mismanagement; and this is one of the major reasons why the Federal Government has been cautioned on the Foreign loan.

Enwegbara Stated “The danger with debt-trap is that as soon as a nation is inside, it becomes much easier for a camel to pass through the eye of a needle than the nation escaping the innumerable overt and covert fees-filled debt-trap, including draconian servicing, repayment, interest, and surcharge fees”.

It would be recalled that the former President of Nigeria Chief Olusegun Obasanjo during his administration successfully coordinated the payment and clearance of the Nation’s  $12 billion Foreign Debt from  an achievement that will not be forgotten.

Mr Rotimi Oyekanmi the Director, Capital Market for Ecobank in his own assertion stated that borrowing was not the problem but what the loan is used for is very key, if a nation is to experience   sustainability.

One Comment

  1. Nura

    December 10, 2012 at 1:25 pm

    We are also worried