Buhari Dumps Obasanjo’s Advice, Pushes Ahead to Borrow $29.9 Billion

By Ikenga Chronicles December 3, 2016

President Muhamamadu Buhari has finally dumped ex-President Olusegun Obasanjo’s advice and is pushing ahead to borrow $29.9 billion.

Obasanjo, a few weeks ago, in a scathing remark had called the president to shelve the thought of borrowing $29.9billion to fund capital project across the states.

The Former President had asked Buhari to stay off the loans, saying that it would mortgage the nation’s future.

“I believe that going for a huge loan under any guise is inadvisable and it will amount to going the line of soft option, which will come to haunt us in future.”

“We immediately need loans to stabilise our foreign reserve and embark on some infrastructure development, but surely not $30 billion over a period of less than three years’’ Obasanjo had said.

Report revealed that Buhari has decided to ignore calls that he should shelve the loans and had resolved to engage Obasanjo and convince him on the need for the loans.

A source said:  “We are going ahead with the loans, but we will allay the fears of ex-President Obasanjo with necessary documents on the sources and plans.”

“I think the ex-President needs some details. We are certainly going to engage Obasanjo. We will not take issues with him in the media.”

“It is to the credit of Obasanjo that he secured debt reliefs for the nation. We want him to realize that we are not out to pile up fresh debts for the nation.”

“These loans are coming from some liberal creditors including the World Bank, Africa Development Bank (AfDB), Islamic Development Bank (IDB), Japan International Co-operation Agency (JICA) and China EximBank.”

“What Nigerians do not know is that we had many offers but were careful in selecting our loan facilitators.”

“For instance, the Buhari administration rejected loan offers from the International Monetary Funds (IMF) because of Nigerians’ attitude to the international agency for such a bail out in 1990.”

“Yet out of the $29.9 billion loans, the Federal Government’s share is $25.8 billion while the states will enjoy $4.1 billion facility.”

The source added:  “There is no way we can even implement 2017 budget without the loans. We are in dire straits. We need some breather to revive the economy.”

“It is not physical cash as being assumed. All the institutions will be involved in the management of the loans to ensure judicious use.”

“And for a prudent government like that of Buhari, there is 100 per cent assurance that the loans will not be mismanaged unlike the case in the past.”

Responding to a question, the highly-placed source added: “The government has mandated the Minister of Finance, Mrs. Kemi Adeosun, to engage the ex-President on the indices behind obtaining the loans. Our hands are tied because of lack of funds to implement laudable projects.”

“The Minister will then return with a feedback from the ex-President on how we can manage the loans better. Fortunately for Buhari, the Minister is more or less a “goddaughter” of Obasanjo’s.”

“Whatever is the communication gap, we will use the engagement with Obasanjo to clear the air.”

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