The huge budgetary provisions to service foreign loans by the Buhari regime were in order.
The Chairman, Senate Committee on Finance, Senator Solomon Adeola, in an interview in Abuja said, “Every successive Government borrows, and since the business of government is a continuum, any incoming government would have to inherit what the past administrations had borrowed.
“It is a commitment they made on behalf of the Federal Republic of Nigeria. What should concern us more is the judicious application of the money government is borrowing because all governments — even the United States — borrow.
“It becomes a burden when government takes loans and refuses to repay. So, setting aside the money in order to service any outstanding borrowing is not a bad idea.”
The senator said the government was considering two ideas, namely, setting up a “sinking fund account,” and at the same time ensuring that “money is set aside to repay the loans as and when due.”
He added, “Borrowing will not bring untold hardship on the people because any government coming on board after Buhari would still borrow.
“For instance, just last week, the Central Bank of Nigeria said Nigeria was into a deficit of N4.62tn in 2019 alone. What that simply means is that the deficit recorded in the 2019 budget is N4.62tn. So, the question is, how do we argue this deficit?
“The options available are: we print new currency, we borrow, or we raise international bond. So, the government needs to move on. I agree that there are challenges in the economy but it is not as a result of the action taken by the Buhari administration alone.”
The chairman of the Senate panel on finance pledged the full commitment of the red chamber to monitor the activities of the 300 revenue-generating agencies with a view to blocking loopholes.