Senate in a fix on $5 billion loan request

By Dele Sobowale

SO if you have continuing rise in debt, the interest payment will rise, and then, it will consume a large part of any revenue that you collect and you won’t   be able to use that revenue for objectives of economic growth and recovery programme, and increasing growth and employment— International Monetary Fund, IMF.

WHAT the IMF has just stated could have been written by a second year student of Economics in any good university in the world. But, curiously, it is a lesson which has not found its way to Abuja, the Federal Executive Council weekly meetings and to Aso Rock. At the moment there is an urgent request from President Buhari in the Senate for the approval of a  $5  billion loan package.

Depending on which exchange rate one adopts, from N315 to N360 per US dollar, the request runs from N1.575…