The leadership of the Trade Union Congress (TUC) of Nigeria has expressed worry over the decision of the Federal Government to borrow $1bn to prosecute the ongoing war against insurgency in the North-East.
TUC President, Mr. Boboi Kaigama, said in his Independence Anniversary speech, made available to reporters on Tuesday, that it was disturbing for the country to engage in external borrowing to funds projects.
Kaigama said while the TUC condemned in strong terms the activities of the Boko Haram sect, it opposed the decision to borrow $1bn purportedly to fund the procurement of military hardware to stem the tide of the insurgency.
He said the $1bn foreign debt could lure the country to yet another debt trap not different from the ones in the past.
The labour leader said the tendency to go for foreign loan seemed to indicate that the country had forgotten the inimical impact of the burden of such debts on national development.
TUC said, “It is mind-boggling that we borrow to fund projects in this country. Evidently, we have quickly forgotten the huge external debt trap we were in until barely a decade ago, plus the adverse consequences it had on both social and infrastructural development in the country.
“Shall we now discard the relief that followed the negotiated exit of the country from the claws of the creditors?
“Much as we find Boko Haram and its activities totally reprehensible and look forward to the defeat of the group, the Congress is averse to the Federal Government’s plan to borrow $1 billion ostensibly to prosecute the anti-insurgency war, for that could well ultimately lead to the country’s ensnarement in another debt trap”.