BREAKING NEWS: Expert warns Nigerian govt against borrowing to finance recurrent expenditure

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Expert warns govt against borrowing to finance recurrent expenditure

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Secretary of Council to the American Chartered Institute of Management and Leadership, Prof Asiwaju Busari Akande has warned the against unnecessary borrowings to finance recurrent expenditures.

DAILY POST recalls that as of December 2023, the approved President Bola 's request to borrow $7.8bn and €100m as part of the federal 's 2022-2024 borrowing plan.

While requesting permission to acquire the loan, said the foreign loan was necessary to bridge the financial gap and return normalcy to economic activities in the country.

Reacting in an interview in Calabar, Cross River State, Prof Akande, 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 economic growth,” he said.

Akande also spoke about the recent budget padding , which he said constitutes tools for that they call ‘demand-pull inflation'

Akande said what most people don't realize is that, budget padding fosters , underdevelopment, unemployment and multidimensional poverty.

He urged President to stop all forms of financial leakages in the system.

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