Minister for Works and Housing, Babatunde Fashola has stated that Nigerian Banks may crash if the Government stops borrowing.
He disclosed that a lot of people criticizing the Federal government’s constant borrowing don’t understand how it works adding that if there is no borrowing, the banking sector may collapse.
Fashola made this comment during an Instagram live chat session with City People Magazine on Saturday.
“Let me say this about borrowing. Many people criticise 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.” he said.
Fashola, who is also a former governor of Lagos and Ex-minister for Power, highlighted that the funds being borrowed by the Buhari administration were being used to fund projects that have “touched more lives than people have acknowledged”.
