‘We Risk Worsening Economic Situation’ – Peter Obi Reacts As Nigeria’s Debt Hits ₦121 Trillion

Former Governor of Anambra State, Peter Obi, has frowned at the increased public debt rate in the country, stating that such a situation will worsen the current economic challenge in Nigeria.

Naija News recalls that Nigeria’s Total Public Debt stood at N121. 67 trillion ($91. 46 billion) at the end of March this year.

In a statement via X on Monday, the Labour Party (LP) presidential candidate in the 2023 election said borrowing is not problematic as long as it is utilised for productive purposes that drive economic growth and development.

However, the new public debt is alarming, and if the borrowing trend continues, the country will surpass N150 trillion by the end of 2024.

Peter Obi noted that if the funds are channelled into productive endeavours such as infrastructure development, education, healthcare, and entrepreneurship, positive outcomes will benefit the economy and citizens in the long run.

He said, “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 recent report at the end of the first quarter indicates a significant increase in our government’s borrowing, reaching a staggering N121.86 trillion. This rapid accumulation of debt is alarming, and if this borrowing trend continues at the current rate, we can expect the total to surpass N150 trillion by the end of the year.

“The fact that several trillions was borrowed in just three months highlights the urgent need for prudent management of our finances. It is crucial to recognize that the purpose of borrowing is paramount. If the borrowed funds are used for consumption or misallocated, 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 same for accountability for the massive borrowings, which have burdened our nation’s future. 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 development 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.”