Why do countries borrow?

Borrowing is often an inevitable aspect of governance, as this enables the government to fulfill its budgets. Thus, creating social amenities in the country.
Sadly, the Nigerian government is in a whirlwind of borrowing from other countries. In a report by the Nigeria debt management office, the country's public debt was N32.9 trillion or $86.3 billion as of December 2020.

In a statement by the Director-General and Chief Executive Officer of the Debt Management Office (DMO), Patience Oniha, She said:
“Most governments borrow, it is not just Nigeria, whether they are capitalists or migrating from socialism to capitalism. We borrow to finance specific projects and that is where the Medium Term External Borrowing Plan is situated.”
She also added that,
“They (loans) are to be used to finance specific projects. Borrowing is derived from the Appropriation Act. Borrowing is a source of funding the budget deficit. About 90 percent of the annual budget deficit is financed through borrowing. We know the process of approving the budget, the various stages it goes through by the time it is approved by the National Assembly and signed into law.”

But what happens when borrowing becomes the bedrock of a nation?

To join in the ongoing debate, kindly click on the link below:
https://veegil.com/nigeria-high-debt-rate-6076d1e9140b75531be93e87