ICSAN sues for caution against Nigeria’s rising debt.
Written by crest887fm on July 31, 2021
The President/Chairman of Council, Institute Of Chartered Secretaries And Administrators Of Nigeria, Mr Bode Ayeku, has said there is a need for the country to manage its rising debt profile and ensure that the loans borrowed are used for capital projects and not for consumption.
Ayeku said this during his valedictory press briefing in Lagos, while speaking on the major achievements of ICSAN in the past two years.
He said, “We know that there are infrastructural deficit and we need to borrow money, and we are not against borrowing money to finance our infrastructural deficit. But those funds must be used exclusively for the stated purposes and not for consumption.
“We will prefer a situation whereby the loans we are obtaining are actually jointly supervised by the government with the lenders. The loans should be used for infrastructural development and for capital project; that is the main purpose.”
According to him, when borrowing, it is important to put in place a sinking fund to repay the loan.