Nigeria will continue to rely on foreign loans to develop infrastructure – Senate President

The Senate President, Ahmad Lawan, has given reasons why the Federal Government will continue to rely on external loans to address the country’s infrastructural deficit.

Lawan, who addressed Senators in his welcome address on the first plenary session of the year on Tuesday at the National Assembly Complex, Abuja, expressed concerns that the funding of the 2022 Budget was predicated on significant borrowing.

“Our country is caught between the devil and the deep blue sea. We have to construct and provide infrastructure, in all parts of our country because infrastructure is needed for our nation to develop.

“However, we do not generate enough revenues to fund the provision of such infrastructure. Until more revenues are generated, the country has to borrow and also resort to other sources of funding our infrastructural development. But we cannot continue to borrow endlessly.

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“It is imperative that we need to improve on the revenue to Gross Domestic Product (GDP) ratio. At about 8 percent Revenue to Gross Domestic Product (GDP) ratio, our country is basically at 50 percent of what is required of the revenue to GDP of 15% for it to support any significant economic development.”

The Senate President, however, assured that the upper legislative chamber would collaborate with revenue-generating agencies in order to reduce borrowings for critical projects in the country.

“The Senate will develop a strategy of engagement with revenue-generating agencies on how to make them achieve their targets and generate more revenues in 2022.

“The Senate will ensure that we boost their revenue-generating drive with a view to reducing borrowing for the development of our much-needed infrastructure.

This is a major challenge for our development and we need to treat as such.”