The presidential candidate of the Labour Party (LP) in the 2023 election, Peter Obi has asked the federal government to provide a concise breakdown on the usage of the funds that were borrowed.
Obi’s request is coming after raising his concern on the swift accumulation of debt in Nigeria — which he referred to “alarming” in a post on his official X handle on Monday.
The former Anambra governor said that the government’s borrowing reached an astounding N121.86 trillion at the end of the first quarter (Q1), warning that if the current trend continues, the total amount borrowed could rise above N150 trillion by the end of the year.
“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,” Obi said.
“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.
“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.”
The LP stalwart said the borrowing of several trillions in just three months indicates the urgent need for prudent financial management.
Obi elucidated that if the borrowed funds are spent on consumption or misallocated, Nigeria’s economic situation will retrogress, sustaining a cycle of debt and blocking its ability to achieve sustainable economic growth and development.
The former governor, nonetheless, said allocating the funds towards productive ventures like infrastructure, education, healthcare, and entrepreneurship would produce beneficial results for the economy and citizens in the long run.
He then implored policymakers and stakeholders to exercise caution and prudence in managing the country’s debt and making sure that borrowing is used for productive purposes that benefit the economy and citizens.
Obi said, such measure would promote sustainable economic growth, development, and prosperity for every Nigerian in the future.
In conclusion, Obi said that Nigeria’s stability and prosperity is dependent on the prudent management of resources.