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Professor Asiwaju Akande
By Akpan David, Calabar
Secretary of Council to the American Chartered Institute of Management and Leadership, Prof Asiwaju Busari Akande has cautioned the federal government of Nigeria against unnecessary borrowings to finance recurrent expenditures.
As of December 2023, the Senate approved President Bola Tinubu’s request to borrow $7.8bn and €100m as part of the Federal Government’s 2022-2024 borrowing plan.
While asking for the approval, Tinubu said the foreign loan was necessary to bridge the financial gap and return normalcy to economic activities in the country.
In an interview in Calabar, Prof Busari who is also a finance expert advised that borrowing should be focused on capital expenditure and human capital development.
“We continue to borrow to finance recurrent expenditures which has no significant impact on the economic growth.”
Akande also spoke about the recent budget padding saga which he said constitutes tools for inflation which they call ‘demand pull inflation’
He said such draws more liquid cash into the economy.
Akande said what most people don’t realize is that, budget padding foster corruption, underdevelopment, unemployment and multidimensional poverty.
He called on President Bola Tinubu to stop stop all forms of financial leakages in the system.
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