The Minister of Works and Housing, Babatunde Fashola, said on Saturday government’s borrowing saved banks in Nigeria from collapse.
The minister, who disclosed this in an Instagram Live Chat with City People, added that many people criticized the government’s borrowing because of their limited understanding.
He said: “Let me say this about borrowing. Many people criticize 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.”
Fashola, who is a former Lagos State governor, however, added that “It is legitimate to hear people who are concerned about borrowing.”
He said the projects, which the money borrowed were invested in, were touching lives.
The minister added: “Since 2015, the infrastructural development programme of President Muhammadu Buhari is touching more lives than people have acknowledged.”