The 2023 Labour Party presidential candidate, Peter Obi, has spoken against the reckless public borrowing by Nigerian leaders and the nation’s growing debt profile.
Peter Obi, in a statement on Tuesday, lamented that several of Nigeria’s borrowings can’t be traced to any meaningful project or impact on the citizens.
He maintained that while there is nothing wrong with government borrowing, such must be channelled towards productive ventures.
The former Anambra State Governor, however, lamented that the case is different in Nigeria, arguing that poverty has deepened, unemployment worsened, healthcare remains in shambles, the country’s education system is deteriorating, and more people are being thrown into poverty despite the huge borrowings by the government.
He said, “While I was away on a short leave over the weekend, I received numerous messages about the nation’s growing debt. Some of the messages even noted that some people in authority are expressing concern that the level has become worrisome. This is something I have been shouting and consistently warning about.
“Let me reiterate what I have consistently maintained, Nigeria cannot continue on this reckless path of borrowing without productivity. There’s nothing wrong with borrowing, what matters is ensuring that every loan translates into real, measurable productivity. Borrowing if not directed towards the critical areas of development, health, education and pulling our people out of poverty will create economic decline and worsen the economy.
“Our tragedy today is that, the trillions we have borrowed cannot be traced to any meaningful impact in the critical sectors for which they were supposedly borrowed. The more we borrow, the more poverty deepens, unemployment worsens, healthcare remains in shambles, our education system is deteriorating, and more people are being thrown into poverty.
“Comparable nations like Indonesia, Vietnam, Egypt, and Bangladesh have borrowed as much as we did, and have made visible and verifiable improvements in critical areas of development. In ours, the situation is the reverse; we take loans for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals are without basic equipment. There is an absence of a visible, measurable impact from our borrowings. Where are these borrowings going?”
Naija News reports the Labour Party chieftain lamented that the current administration of President Bola Tinubu, despite announcing to Nigerians that the country has met its 2025 revenue target since August, is attempting to borrow another $1.75 billion World Bank loan.
He submitted that action must be taken so that the generations unborn do not inherit a bleak future.
“In recent years, we have spent over 70% of government revenue servicing debt, leaving almost nothing for investment in health, education, job creation and poverty alleviation for our people.
“This is why I have always insisted that borrowing should be strictly tied to productive ventures that will generate measurable economic returns, not for consumption or waste.
“Just days ago, Mr. President announced to the country that we have met our revenue for the year, yet he is on the news again today, attempting to borrow another $1.75 billion World Bank loan. This fiscal indiscipline must end.
“We must prioritise, and channel resources into productive sectors that create wealth and jobs. If we do not act with urgency, our children and youths will inherit nothing but debt and despair with no sustainable future,” Obi submitted.
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