Peter Obi, the main opposition voice and former Presidential candidate of the Labour Party in the 2023 general election, has once again raised concerns about the nation’s rising debt profile, stating that the current figure of N97.3 trillion is alarming.
The former Governor of Anambra State expressed particular worry over the fact that a significant portion of these debts is not being utilized for productive purposes. Obi criticized the use of nearly N10 trillion to service unproductive debts, labeling it as detrimental to economic growth.
In a statement posted on his X handle on Tuesday, Obi emphasized his ongoing concerns regarding the escalating borrowing trend and its adverse effects on the economy. He highlighted the lack of visible investments corresponding to the borrowed funds as required by law.
Obi noted that the nation’s debt stood at N87.9 trillion at the end of the second quarter of 2023, raising questions about the utilization of such a substantial amount, particularly the over N30 trillion borrowed through ways and means by the previous administration. He expressed dismay that despite this, an additional N10 trillion was added to the debt profile between the third and fourth quarters of 2023, without apparent beneficial investments.
Furthermore, Obi highlighted the significant amount allocated for debt servicing, with approximately N10 trillion set aside for servicing unproductive debts. He pointed out that this amount surpasses the combined budgetary allocations for crucial sectors such as defense, education, health, and infrastructure.
Obi urged the government to reconsider its borrowing approach and prioritize a thorough evaluation of previous loans’ utilization before making further decisions. He emphasized the importance of prudent management and productive utilization of scarce resources to transition the nation from consumption-oriented to production-oriented economic policies, envisioning a New Nigeria characterized by accountable and efficient resource management.
