Peter Obi Sends Warning To Pres. Buhari Over Debt Ahead Of 2023 Election

2 mins read

The Presidential candidate for Labour Party in the coming 2023 election, Peter Obi, has frowned against the continous borrowing of President Muhammadu Buhari for consumption.

Obi said its time for Buhari’s administration to borrow for investment in revenue generating development projects and other productive ventures. He made this known in a statement on social media platform, Twitter.

The warning from the former governor of Anambra State, comes at a period Nigeria rose to fourth place on the list of the world’s chronic debtors, after the country was the only nation on the top five that failed to reduce its debt, rather, increased it.

READ ALSO  DMO Records $4bn Eurobond On FMDQ Securities Exchange

Prime Business Africa had reported that India, Bangladesh, Pakistan, Nigeria and Vietnam are the top five debtors, according to the World Bank’s Fiscal Year 2022 International Development Association (IDA) financial statements.

Nigeria overtook Vietnam on the list after it debts rose from $11.7 billion as at June 30, 2021, to $13 billion at the end of the first half of 2022. With debt servicing surpassing revenue in the first four months of this year, the next President of Nigeria will be taking up significant debt from Buhari’s administration.

With the World Bank warning that the debt could become unsustainable, Obi, who will be vying for the Presidential post, in the statement released on Wednesday, 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.

READ ALSO  Seplat Threatens Lawsuit In Latest Development Of ExxonMobil, MPNU $1.2 billion Deal

“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.”

+ posts
READ ALSO  Nigerian Gov’t Eyes N8.46 trillion Revenue for 2023, Finance Minister Defends Debt

1 Comment

Leave a Reply

Your email address will not be published.