The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has advised the government to tie its borrowings to specific projects in order to boost infrastructure development in the country.
The Institute also enjoined the federal government to provide incentives to boost local production of petroleum products in order to secure the nation’s foreign exchange for critical projects.
Speaking at a media parley in Lagos, President, ICSAN, Mr. Bode Ayeku, said: “The reason why we are having challenges with our debt profile is that most of those loans were used for consumption.
“We could not see tangible assets. That was why I said the government should have dedicated loans for a specific project.
‘‘This idea of saying ‘ we are borrowing X million naira generally for consumption” won’t work. If it is for maintenance or road construction, you can track that.
“If you borrow to build a refinery, it is an asset, an income-generating asset. If we have refineries that are working and we are able to produce locally, whatever profit the private sectors are making, the government will be able to make it.”