The Minister for Works and Housing, Mr Babatunde Fashola, says banks may collapse in Nigeria if the government does not borrow.
He said this in an Instagram Live Chat with City People, monitored by our correspondent on Saturday.
He explained that many people criticised government’s borrowing because of their limited understanding of it.
He said: “Let me say this about borrowing. Many people criticise it because they do not understand. If the government doesn’t borrow, a critical sector of the Nigerian economy may collapse – that is the financial and banking sector. The biggest business as to which banks make money is to lend.
“That is where they get interests to pay customers. It is by that lending that the government and private sector make profit. So, it is critical to employment also.”
However, the minister added that “It is legitimate to hear those who are concerned about borrowing.”
He noted that the projects, which the money borrowed are invested in, were touching lives.
“Since 2015, the infrastructural development of President Buhari is touching more lives than people have acknowledged,” Fashola added.
On how he felt when his ministerial portfolios were reduced to works and housing, the minister replied, “It is like asking me if I missed being governor. I don’t. It is a job and for every job what I bring to the table is to deploy to the fullest all my energies and skills that God has given me. Once I am done, I don’t look back