Small Business Owners Caution Federal Govt Over $21.7bn Fresh Borrowing Plan

The Association of Small Business Owners of Nigeria (ASBON) has cautioned that the federal government’s proposed $21.7 billion external borrowing could worsen Nigeria’s debt sustainability concerns unless the funds are tied to projects that generate measurable economic returns, jobs and higher revenue.
ASBON president, Dr Femi Egbesola, said borrowing is not inherently wrong, but Nigeria’s weak revenue base relative to its obligations makes debt sustainability increasingly worrying.
“External borrowing is justifiable when it finances productive infrastructure that generates economic growth and revenue,” he said.
“The critical question is whether the returns will exceed the cost of b...