Don't Miss


Home   >   Business   >   Industries   >   Economy   >   $7.9b loan: Senate Warns States over Careless Borrowing

$7.9b loan: Senate Warns States over Careless Borrowing

By on December 11, 2012

The Senate has warned state governments against careless borrowing, saying it would not agree to every demand.

Chairman, Senate Committee on Local and Foreign Loans, Senator Ehigie Uzamere sounded the warning during a meeting set for the continuation of Federal and state government’s defence of a loan of $7.9 billion.

Uzamere said states expecting his committee to approve their requests for loans without good reasons should forget it.

He said the loans are not meant for private pockets, not free money, but monies meant for development and investment.

“It is sad the way we are going in this country,” he said, adding that states must take loans seriously.

A member of the committee, Senator Gbenga Obadara, also cautioned that there was no reason for any state to “over borrow.”

He said, “These loans, you are not the ones to repay it. This is how our nation became a debtor nation and we battled to free the nation from huge foreign debts.

“From what I see, the debt profile will continue to pile up. I don’t want my children to become slave of any nation because of loans. We know the consequences of these loans. You may mean well, but you must be careful how you borrow.

“Some states have asked for $50 million loan, others asked for more. You begin to wonder how much is the GDP to warrant the huge loans.”