Responsible Borrowing: Key to Financial Success in Nigeria

Gloria Onosode discusses the importance of responsible borrowing as a financial tool for achieving personal and business objectives in Nigeria. She emphasizes that borrowing should not be a survival mechanism but part of a broader financial strategy.

Key principles include understanding the purpose of borrowing, knowing repayment capacity, and integrating loans into long-term financial plans. Onosode differentiates between good debt, which can lead to increased income through investments, and bad debt, which drains cash flow without providing returns.

She highlights the need for businesses, especially small and medium enterprises (SMEs), to address temporary cash flow gaps to seize opportunities. Onosode advises against using business loans for personal expenses and stresses the importance of transparency in borrowing costs.

She concludes that a disciplined approach to borrowing can support business growth and wealth creation in a challenging economic environment.