The presidential candidate of the Labour Party, LP, in the 2023 general elections, Peter Obi, has condemned the rapid accumulation of Nigeria’s debt, stating that it is alarming, News About Nigeria reports.
He stated this in a statement via his verified handle on X on Monday.
Peter Obi noted that while borrowing is not inherently problematic, as long as it is utilised for productive purposes that drive economic growth and development, the country’s borrowing is a problem.
According to him, if this borrowing trend continues at the current rate, Nigerians can expect the total to surpass N150 trillion by the end of the year.
The former Anambra state governor criticised the borrowing of several trillions, which was done in just three months, stating that it highlights the urgent need for prudent management of the country’s finances.
He, therefore, called for a detailed breakdown of how the borrowed funds have been utilised and urged the federal government to demonstrate their tangible impact on the country’s growth and development.
“I have consistently maintained that borrowing is not inherently problematic, as long as it is utilized for productive purposes that drive economic growth and development. The recent report at the end of the first quarter indicates a significant increase in our government’s borrowing, reaching a staggering N121.86 trillion.
“This rapid accumulation of debt is alarming, and if this borrowing trend continues at the current rate, we can expect the total to surpass N150 trillion by the end of the year.
“The fact that several trillions was borrowed in just three months highlights the urgent need for prudent management of our finances. It is crucial to recognize that the purpose of borrowing is paramount. If the borrowed funds are used for consumption or misallocated, we risk worsening our economic situation, perpetuating a cycle of debt and hindering our ability to achieve sustainable economic growth and development. On the other hand, if the funds are channelled into productive endeavours such as infrastructure development, education, healthcare, and entrepreneurship, we can expect positive outcomes that benefit our economy and citizens in the long run,” Peter Obi wrote.
