Experts caution FG on new borrowings, proffer alternative

Some financial experts have urged the Federal Government to explore Public Private Partnership (PPP) option in addressing the country’s infrastructural challenges.

They also urged government to be cautious on new borrowings in order not to incur more debts.

They said this in separate interviews with the News Agency of Nigeria (NAN) on Saturday in Lagos.

The former Executive Secretary, Chartered Institute of Bankers of Nigeria (CIBN), Dr Uju Ogubunka, said the Federal Government could be innovative in fixing developmental projects without incurring more debts.

“The government should harness the enormous prospects of the PPP in tackling infrastructural challenges impeding our economic growth.

“This model is one of the solutions in tackling our infrastructural dearth, due to our poor fiscal revenue currently,” Ogubunka said.

He noted that the three tiers of government need to reduce the increasing cost of governance in order to free funds for infrastructural purpose.

“Adopting this cost saving measures is imperative so as government can reallocate the resources to other productive needs of the society.

“This approach will stop wastages in governance and reduce the spate of being in debt from borrowings from international lenders,” Ogubunka said.

Also, the President Standard Shareholders Association of Nigeria, Mr Godwin Anono, said the government should reduce the rate of borrowings because the country’s debt stock was assuming a worrisome dimension.

“The three tiers of government should reduce borrowings and be innovative in improving Internal Generated Revenue.

“As every state in the country has enormous revenue potential that could be harnessed for our common good,” Anono said.