Obi laments FG borrowing spree, warns of dire consequences

The presidential candidate of the Labour Party in the 2023 election, Peter Obi has lamented the Federal Government’s borrowing spree and the increasing debt profile.

In a series of tweets on his X handle, the former Anambra State governor warned that the rising debt profile would be a burden for future generations of Nigerians.

Obi said though borrowing in itself is not a bad thing for a government to do, not utilizing it in the right direction to drive the economy is a drawback.

He stressed that the several trillions of naira borrowed by the Federal Government in just three months highlights the urgent need for prudent management of our finances.”

He wrote: “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.

“The fact that several trillions was borrowed in just three months highlights the urgent need for prudent management of our finances.

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“It is crucial to recognize that the purpose of borrowing is paramount. If the borrowed funds are used for consumption or mis-allocated, we risk worsening our economic situation, perpetuating a cycle of debt and hindering our ability to achieve sustainable economic growth and development.

“On the other hand, if the funds are channelled into productive endeavours such as infrastructure development, education, healthcare, and entrepreneurship, we can expect positive outcomes that benefit our economy and citizens in the long run.

“As I recall, the law governing borrowing is explicit, requiring detailed explanations of the intended use, timing, and other relevant parameters

“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.

“I respectfully request accountability for the massive borrowings, which have burdened our nation’s future.

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“For the sake of our children and unborn generations, transparency and good governance, a detailed breakdown of how these funds have been utilized and demonstrate their tangible impact on our country’s growth and which have burdened our nation’s future should be provided.

“In conclusion, I urge policy makers and stakeholders to exercise caution and prudence in managing our national debt, ensuring that borrowing is utilized for productive purposes that benefit our economy and citizens.

“By doing so, we can promote sustainable economic growth, development, and prosperity for all Nigerians for generations to come. Our future stability and prosperity depends on prudent management of resources.”