Connect with us

News

$12bn cash payment to service foreign debt in 2005 was a wrong move –Fashola

Published

on

Advertisement

$12bn cash payment?to service foreign debt in 2005 was a wrong move ?Fashola

Nigeria’s Works and Housing Minister,  Babatunde Fashola, has criticized the decision of 2005 Olusegun Obasanjo led government to pay $12 billion in cash to Nigeria’s creditors, out of the $30 billion sovereign debt in 2005.

According to Fashola as at the time tackling infrastructure was the more smarter move and he would have vehemently opposed the action if he was a member of the Federal Executive Council then. He argued that such a huge chunk of cash was better channeled into strategic investment in infrastructure, which would have been used to repay the debt later on.

Advertisement

Fashola, who spoke at a town hall meeting organised by Business Hallmark themed; “Nigeria’s infrastructure revolution; Road to a New Future”, maintained that tackling infrastructure decay was a higher priority than the repayment of the nation’s debt when the decision was taken.

“Our government in 2005 as a matter of policy decided to go and pay debt of $12 billion cash but our house was in very dire need. That was a policy choice. I would have opposed that decision if I was in government because we needed to invest urgently at that time.” Fashola, said at a town hall meeting organized by Business Hallmark themed; “Nigeria’s infrastructure revolution; Road to a New Future”

Advertisement

“If we had invested, the results of those investments would have earned us more revenues, much more income and would put us in a better position to service those debts. Fast forward to 2015, after paying $12 billion, we are now owing $32 billion.

“We look for the resources, invest them in infrastructure and use the returns to pay back this loan.”

Advertisement

The Minister, however, said that the Buhari administration has taken infrastructure to be a priority and that the government was currently implementing 896 road and bridges contracts covering over 13,000km in all the states of the federation.

 

Advertisement

Advertisement
UNBELIEVABLE Married woman caught with another man by in-laws
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

2 + three =

Advertisement
Advertisement

Most Popular

X