Minister of Information, Lai Mohammed has insisted that there is nothing wrong in borrowing as long as funds are invested in infrastructure rather than services or consumption.
He said this at the construction site of the Ibadan Train Station on Saturday where he and the Minister of Transport, Rotimi Amaechi went to inspect.
Lai Mohammed insisted that Nigeria is effectively utilizing the funds it borrowed from China and elsewhere for infrastructural development and job creation.
“We didn’t borrow money for services or overhead expenditure. We borrowed money for capital projects: rail; roads; bridges; power – infrastructure generally,” he said.
Amaechi on the other hand said $1.6billion is being expended on the Lagos-Ibadan Standard Gauge rail line and the stations, with $200-$300million counterpart funds from the Federal Government as he appealed to the National Assembly to approve the $5.3billion loan request from China.
He said this would enable the government to execute the Ibadan-Kano Standard Gauge rail line.