Amidst growing debts, Peter Obi cautions govt against more borrowings

Mr. Peter Obi, the Labour Party’s candidate for president, has warned the Federal Government led by President Muhammadu Buhari, against taking on further debts for consumption.

Obi issued the warning in a series of tweets, on Wednesday, through his verified Twitter account @PeterObi.

He said: “As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures.

“It’s ironical that states that received fiscal bailouts did not repay the loans and are still borrowing beyond their revenue earnings.

“Also, it has become imperative to restrict federal borrowings to the statutory 5 per cent of the previous year’s revenue.”

Recently, the Minister of Finance, budget, and national planning, Zainab Ahmed, said President Muhammadu Buhari’s administration withdrew $35.6 million from the excess crude account for security.

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Ahmed disclosed that the significant amount was withdrawn despite the administration not adding any funds in the last four years into the excess crude account, which was created in 2004.

Ripples Nigeria had previously reported that the administration deducted the $35.6 million in May, leaving a balance of $376,655.09. The money was spent on security despite the ECA serving as a bailout for the economy in dire times.

As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures.

— Peter Obi (@PeterObi) August 10, 2022

 

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