The former presidential candidate for the Labour Party, Peter Obi, has called on the Federal Government to slow down on its borrowing for the moment and re-evaluate what has been achieved with previous borrowings, News About Nigeria reports.
He made this call in a statement via his verified X handle on Tuesday, adding that a re-evaluation will help the government make better decisions for the nation’s good.
He noted that the public debt of the country keeps increasing with little or no impact on the country’s economy, adding that the borrowings of the government have so far been unproductive.
He pointed out that the Buhari-led administration incurred huge debt, especially with the N30 trillion in ways and means from the central bank.
The former Anambra governor mentioned that the last administration could have ended the nation’s borrowings, adding that the debt failed to yield value addition to the country.
“I remain concerned about our borrowings, considering their galloping situation over the years, and its concomitant effects on the economy.
“More worrisome is the fact that there has been no corresponding visible usage or investments as required by the law to show their impact on the nation,” he stated.
Obi noted that in 2023, Nigeria spent huge amounts totaling N10 trillion servicing both domestic and external debt, which he described as unproductive debts.
“The implication is that what we borrowed in a quarter is about N10 trillion and what we spend on debt servicing, which is also about N10 trillion, are each more than the combined budgetary allocation for the four highest priority areas, which are; defence (N3.25trn), Education (N2.18trn), Health (1.33trn), and Infrastructure (N1.32trn),” he added.
