The director, Institute of Capital Market Studies, Nasarawa State University, Keffi, Professor Uche Uwaleke, has said that borrowing by Tinubu’s administration is not inherently bad, stressing that what matters most is how effectively it is used for productive and developmental purposes.
He said this in an interview with ARISE NEWS on Friday, where he reviewed Tinubu’s economic reforms as the President marks his third year in office.
“On the debt issue, again, I keep saying that debt in itself is not a bad thing. What is important is what it is used for,” he stated.
Adding, he said: “Last year, for example, we had between January and September—according to the Budget Implementation Report—the government borrowed ₦12 trillion, out of which just ₦3 trillion was used for capital projects. So that’s the kind of, you know, something we should avoid.”
Calling for a review of Nigeria’s social safety net approach, he suggested that cash transfer programmes should be reviewed and, where necessary, discontinued in favour of more productive empowerment initiatives.
“On the issue of social safety nets, I think they are impactful. I think the government should take a second look at this cash transfer scheme. I think the government should take a second look and discontinue it where possible, and rather focus on ensuring that money is put in the hands of people in a productive manner,” he suggested.
On how to improve the economy in local government areas, Prof Uwaleke proposed the federal government raising ₦774 billion from stabilisation funds or projected NLNG and NNPC revenues, shared as ₦1 billion per local government to fund skills centres for grassroots growth and reduced migration.
“The FG, can raise ₦774 billion and give each local government ₦1 billion. The government can also borrow upfront from expected revenue from the NLNG or NNPC. The government knows how to raise ₦774 billion, that’s not too much money. Give each local government ₦1 billion. And, of course, don’t pass it through the local government council, don’t pass it through any political office. Set up a board—an implementation board—of traditional rulers, youths, women, and so on, within the local government to manage the funds. And then use that for vocational and digital skill centers in all the local government areas in Nigeria. That is one way you can stimulate economic activity in the local communities, and you’ll find this issue of crime rate will reduce,” he said.
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