Lai Mohammed explains why borrowing isn’t bad

Nigeria’s minister of information, Lai Mohammed, says there is nothing bad in borrowing, provided the funds are invested in infrastructure rather than services or consumption.

Speaking with journalists after he and Rotimi Amaechi, minister of transportation, inspected Lagos-Ibadan rail line, Mohammed said the government does not borrow money for overhead but for capital projects.

There have been concerns about Nigeria’s borrowing from China and other countries.

“There is no better way to answer Nigerians as to what we have done with the money we have borrowed than this trip,” the minister said in a statement.

”On this trip, you have seen first hand the stations being constructed, the rail lines and the people who are working on the projects.

“Rather than arguing with critics, we opted to allow you (journalists) – the ears and eyes of Nigerians – to come and see for yourselves what we are doing with the money we are borrowing.

“We didn’t borrow money for services or overhead expenditure. We borrowed money for capital projects: rail; roads; bridges; power – infrastructure generally.”

On his part, Amaechi said $1.6 billion is being expended on the Lagos-Ibadan standard gauge rail line and the stations.

He appealed to the national assembly to approve a $5.3 billion Chinese loan request to enable the government execute the Ibadan-Kano standard gauge rail line.