Obi Criticizes Nigerian Government’s Borrowing Practices as “Unproductive”

Former Labour Party presidential candidate, Peter Obi, has voiced sharp criticism against the Nigerian government’s borrowing practices, labeling them as “unproductive.”

In a statement released on Tuesday via his verified X handle, Obi expressed concerns over the rising national debt, asserting that it has had minimal impact on the nation’s economy.

Obi, a former governor of Anambra State, particularly targeted the massive debts accumulated during the previous administration, notably citing the central bank’s N30 trillion loans. He argued that the government had failed to utilize these loans effectively, resulting in a lack of tangible benefits for the country.

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Highlighting the recent debt profile released by the Debt Management Office (DMO), Obi emphasized the alarming trajectory of Nigeria’s public debt, which is projected to reach N97.3 trillion by the end of 2023. This figure includes N59.12 trillion in domestic debt and N38.22 trillion in external debt.

According to Obi, Nigeria allocated a staggering N10 trillion in 2023 solely for repaying its external and domestic debts, which he deemed as “unproductive.” He underscored the discrepancy between the amount borrowed and the amount allocated for crucial sectors such as infrastructure, health, education, and defense in the national budget.

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In light of these concerns, Obi called for a reevaluation of the government’s borrowing strategy, urging for a “de-acceleration” in borrowing while conducting thorough investigations into the purposes of previous loans. He emphasized the need for greater transparency and accountability in the utilization of borrowed funds to ensure their effectiveness in driving meaningful development and growth in the country.

Obi’s critique reflects broader anxieties surrounding Nigeria’s escalating debt burden and the need for prudent fiscal management to safeguard the nation’s economic stability and prosperity. As debates over fiscal policy intensify, his remarks resonate as a call to action for policymakers to prioritize responsible borrowing practices and prioritize investments that yield tangible socio-economic benefits for all Nigerians.