Former presidential candidate for the Labour Party, Peter Obi, has voiced his concerns over Nigeria’s increasing public debt, describing the government’s borrowings as unproductive.
In a statement shared via his verified social media handle on Tuesday, Obi raised alarm over the continuous rise in Nigeria’s debt without corresponding visible impacts on the economy.
Obi, a former governor of Anambra State, expressed particular dismay over the borrowings of the previous administration, highlighting the substantial debt accrued, especially with the N30 trillion ways and means from the central bank.
He lamented that despite the significant borrowing, there has been little to no value addition to the country’s economy.
“I remain concerned about our borrowings, considering their galloping situation over the years, and its concomitant effects on the economy,” Obi remarked.
“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.”
Obi’s comments come in response to the recent release of Nigeria’s debt profile by the Debt Management Office (DMO), which revealed a 10 percent increase, reaching N97.3 trillion by the end of 2023.
The breakdown includes domestic debt of N59.12 trillion and external debt of N38.22 trillion.
Highlighting the concerning trend, Obi pointed out that in 2023 alone, Nigeria spent a substantial amount totaling N10 trillion to service both domestic and external debts.
He criticized these expenditures as “unproductive debts,” emphasizing that the funds spent on debt servicing exceeded the combined budgetary allocations for critical sectors such as defense, education, health, and infrastructure.
“The implication is that what we borrowed in a quarter, 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,” Obi stated.
In light of these revelations, Obi called on the government to reassess its borrowing practices and prioritize transparency in disclosing how previous loans have been utilized.
He urged authorities to “de-accelerate” borrowings and undertake a thorough examination to curb the escalating debt profile, emphasizing the need for prudent financial management to ensure sustainable economic growth and development.