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N121.86trn Debt: Obi demands transparency in Nigeria’s borrowing spree

Peter Obi, a presidential candidate of the Labour Party in the 2023 election, has demanded transparency from the Nigerian government regarding the utilization of borrowed funds, citing concerns over the country’s escalating debt.

In a statement, Obi expressed alarm over the rapid accumulation of debt, which reached N121.86 trillion by the end of the first quarter of the year, with projections that it could exceed N150 trillion by year-end if current trends persist.

“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,” Obi emphasized.

He called for accountability, stressing the legal requirement for detailed explanations on the intended use, timing, and impact of borrowed funds. Obi highlighted the necessity to ensure efficient allocation to foster economic growth, job creation, and improve citizens’ living standards.

“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 insisted.

He cautioned against misallocation of funds towards consumption, warning that it could worsen the nation’s economic situation and perpetuate a cycle of debt.

“If the borrowed funds are spent on consumption or misallocated, the nation’s economic situation will worsen, sustaining a cycle of debt and impeding its ability to achieve sustainable economic growth and development,” Obi stated.

Obi urged policymakers and stakeholders to exercise caution and prudence in managing the nation’s debt, emphasizing the importance of directing funds towards productive ventures such as infrastructure, education, healthcare, and entrepreneurship.

“This would foster sustainable economic growth, development, and prosperity for all Nigerians in the future,” Obi concluded, stressing the critical role of prudent financial management in ensuring the nation’s stability and prosperity.

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