By Fola James
Babatunde Raji Fashola, the minister of works has disclosed that President Muhamadu Buhari saved Nigerian banks from collapsing.
He said it would be very difficult for the deposit money banks, DMBs to survive without government borrowing.
The administration has received virulent criticism over the country’s rising debt.
Nigeria’s local and foreign debt, according to the Debt Management Office, DMO has hit over N33 trillion the last five years.
But the minister, said Thursday in an interview that the debt issue has been misconstrued.
Fashola said on the vexed debt issue “Let me say this about borrowing. Many people criticise it because they do not understand.
If the government doesn’t borrow, a critical sector of the Nigerian economy may collapse – that is the financial and banking sector. The biggest business as to which banks make money is to lend.”
Borrowing helps the banks because “That is where they get interests to pay customers. It is by that lending that the government and private sector make profit. So, it is critical employment also.It is legitimate to hear those who are concerned about borrowing.”
He said borrowed funds have been used meticulously by government in providing critical infrastructure.
“The infrastructural development of president Buhari is touching more lives than people have acknowledged,” the minister said..
