Former presidential candidate for the Labour Party, Peter Obi, has expressed concerns over Nigeria’s increasing public debt, describing the borrowings as unproductive. In a statement shared via his verified handle on Tuesday, Obi highlighted the lack of visible impact of the borrowed funds on the country’s economy.
Obi pointed out that despite the significant increase in Nigeria’s public debt, there has been little or no corresponding improvement in the nation’s economic performance. He specifically criticized the previous administration for accumulating substantial debt, including the N30 trillion obtained through ways and means from the central bank, without yielding tangible value addition to the country.
The former Anambra governor emphasized his ongoing apprehension about Nigeria’s borrowing trajectory and its adverse effects on the economy. He lamented the absence of visible investments or usage of the borrowed funds in accordance with the law, indicating a lack of transparency and accountability in the management of public finances.
Obi’s remarks 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. He criticized the significant amount spent on servicing both domestic and external debt, amounting to N10 trillion, which he deemed as “unproductive debts.”
Highlighting the implications of the excessive debt servicing expenditure, Obi emphasized that the funds allocated for debt servicing surpass the combined budgetary allocations for crucial sectors such as defense, education, health, and infrastructure. He called for a reassessment of the government’s borrowing strategy and urged a slowdown in borrowing activities to mitigate the escalating debt profile.