Peter Obi, the former Governor of Anambra State and Labour Party’s presidential candidate in the 2023 election, has expressed deep concern over Nigeria’s rapidly escalating national debt, saying the country “risk worsening our economic situation” if the borrowed funds are used for consumption or misallocate.
In a post on his X page, Obi highlighted that the country’s debt has reached an alarming N121.86 trillion at the end of the first quarter, warning it could surpass N150 trillion by year-end if the current borrowing trend continues.
While acknowledging that borrowing is not inherently problematic, Obi emphasised the critical importance of how borrowed funds are utilized.
“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, he said in a string of tweets.
“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 former governor stressed the need for borrowed funds to be channeled into productive sectors such as infrastructure development, education, healthcare, and entrepreneurship. He argued that such investments could yield positive outcomes, benefiting the economy and citizens in the long run.
“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,” he cautioned.
“It is essential to ensure that borrowed funds are allocated efficiently and effectively to drive economic growth, create jobs, and improve the standard of living of the majority of our citizens.”
Obi also pointed out that the law governing borrowing requires detailed explanations of the intended use, timing, and other relevant parameters. In light of this, he called for greater transparency and accountability regarding recent massive borrowings.
“For the sake of our children and unborn generations, transparency and good governance, a detailed breakdown of how these funds have been utilized and demonstrate their tangible impact on our country’s growth and development should be provided,” Obi stated.
The Labour Party figure urged policymakers and stakeholders to exercise caution and prudence in managing the national debt. He emphasised the importance of ensuring that borrowing is utilized for productive purposes that benefit the economy and citizens, promoting sustainable economic growth and prosperity for all Nigerians.
Obi’s statement comes at a time of growing concern over Nigeria’s debt sustainability and its potential impact on future generations.
As the country continues to face economic challenges, his call for prudent financial management and transparency in government borrowing is likely to resonate with many Nigerians worried about the nation’s economic future.
