Ahmad Lawan, Nigeria’s Senate President while justifying the Federal Government’s need to borrow funds, said it (borrowings) is necessary for infrastructural development in the country.
Lawan revealed this on Tuesday at the Senate Chamber upon the resumption of the lawmakers from recess.
He also said that funding the 2022 budget is based on significant borrowing, adding that the nation is caught between the devil and the deep blue sea.
The Senate President equally emphasised the need to construct and provide infrastructure in all parts of the country because infrastructure is needed for development.
While accepting the Federal Government cannot continue to borrow endlessly, he warned that it is imperative that we need to improve on the revenue to Gross Domestic Product (GDP) ratio.
“Distinguished Colleagues, funding of the 2022 Budget is predicated on significant borrowing. Our country is caught between the devil and the deep blue sea,” he said.
“Distinguished Colleagues, as we all know the oversight of the implementation of the Budget is a critical function of the National Assembly.
“We must therefore strategize on effective oversight of the implementation of the 2022 Budget. This is going to be the last budget that would be fully implemented for 12 months in the life of the Ninth Senate. We, therefore, need to supervise very closely.
“At about 8% Revenue to GDP ratio, our country is basically at 50% of what is required of the revenue to GDP of 15% for it to support any significant economic development.”
