Cami Ezenwa is Editorin- Chief of theeagles. com.ng and a lecturer at The Nigerian Institute of Journalism (NIJ)
Excessive borrowing by the Nigerian government portents great danger for the country as economies that are run on constant borrowing from overseas countries or agencies tend to run into problems because the ability to pay might become difficult. The first indication actually is that the government has not planned very well else why do you borrow as a government? You borrow because you don’t have external resources to run your affairs or possibly because you have mismanaged the resources. So, you now need external assistance to meet your obligations. From experience, when countries borrow, they further enslave their citizens because there’s no free money anywhere. Sometimes, the repayment terms can be very difficult, putting conditions that when you don’t meet them one’s indigenous country would be endangered.
Whether it is the World Bank or the International Monetary Fund (IMF), they are known for conditions that usually make it difficult for the economy to survive. So, what is happening really portents a great danger, it shows no planning on the side of the government and also recklessness.
Given the fact that the country is endowed with resources both natural and in human terms, why is the government resorting to borrowing? In any case, this is a government that came to power with a lot of promises, one of which was that it will manage the economy responsibly. This is different from what it was in the previous administration. This is the second term of the government and it is been borrowing from left, right and centre; it portends great danger.