Economic and financial analyst Emmanuel Kelvin has questioned President Bola Tinubu’s administration’s $20.5 billion and €1.45 billion fresh external borrowing request.
In an interview on Channels Television, Kelvin argued that rising crude oil prices of $145 per barrel should translate into increased government revenue in Nigeria.
His remarks come amid controversy surrounding President Tinubu’s request for a $20.5 billion and €1.45 billion supplementary borrowing package to fund infrastructure, agriculture and education.
Kelvin questioned why the Federal Government was seeking additional loans despite the increase in crude oil prices, which could potentially boost Nigeria’s revenue from oil exports.
According to him, the government’s borrowing plans raise questions about the relationship between rising crude oil prices and the country’s expected revenue.
“So, if crude oil prices are this high and you are supposed to get revenue accretion from higher crude oil prices, why are you going to borrow $20bn for infrastructure, agriculture and education? Something is not adding up,” he said.
DAILY POST reports that the proposed borrowing package includes $20.5 billion and €1.45 billion in supplementary financing.
However, the borrowing plan has triggered reactions from Nigerians, including opposition leaders.
Recall that Atiku Abubakar of the African Democratic Congress, ADC, urged the Senate to demand clarity from Tinubu’s administration before approving the borrowing request.
DAILY POST reports that Arise Television anchor Oseni Rufai has faulted President Bola Tinubu’s fresh loan request.