Prof. Samson Edo, a lecturer at the University of Benin (UNIBEN) has advised the Federal Government not to be trapped in binding agreements for foreign loans whose multiplier effects can push the nation’s economy into dangerous territory.
The brilliant professor gave the advise while delivering the 212th inaugural lecture series of the University where he sued for a viable alternative to external sources of borrowing especially when there are oil price shocks in the global market.
Prof. Edo who spoke on the topic; ‘The Worrisome Cycle of External Borrowing in Nigeria: How Can Domestic Capital Market Provider Remedy”, stated that 50 per cent of the country’s debt was owed to International Development Association (IDA) and China EXIM Bank.
The Professor of Financial Economics said Nigeria can obtain external loans to fund development projects, but, such loans can export austerity into the nation in future due to lack of financial discipline.
Edo explained that South Africa is now the worse due to the high level of unemployment, which he blamed on ‘Xenophobic attacks’ on some economic migrants including Nigerians.
“South Africa is the leading debtor Country in Africa, borrowing enormous sums of money to sustain State-owned Enterprises. The government of South Africa has borrowed so much since 2010, yet has not been able to achieve its objective of reducing unemployment which remains above 50 per cent,” he said.
Prof. Edo has over sixty publications in reputable journals and had produced a PhD student who is now a professor.