Former Governor of Anambra State, Peter Obi, has lamented over Nigeria’s “growing debt”, saying, “Nigeria cannot continue on this reckless path of borrowing without productivity”.
The 2023 Labour Party (LP) Presidential candidate made the statement after resuming from a “short break over the weekend”.
Obi admitted, it is not a bad thing to borrow, however, “what matters is ensuring that every loan translates into real, measurable productivity”.
He said, it is almost impossible to trace the “trillions” Nigeria has borrowed “to any meaningful impact in the critical sectors for which they were supposedly borrowed”.
Taking X to bare his mind on Nigeria borrowing, Obi said: “While I was away on a short leave over the weekend, I received numerous messages about the nation’s growing debt. Some of the messages even noted that some people in authority are expressing concern that the level has become worrisome. This is something I have been shouting and consistently warning about.
“Let me reiterate what I have consistently maintained, Nigeria cannot continue on this reckless path of borrowing without productivity. There’s nothing wrong with borrowing, what matters is ensuring that every loan translates into real, measurable productivity. Borrowing if not directed towards the critical areas of development, health, education and pulling our people out of poverty will create economic decline and worsen the economy.
“Our tragedy today is that, the trillions we have borrowed cannot be traced to any meaningful impact in the critical sectors for which they were supposedly borrowed. The more we borrow, the more poverty deepens, unemployment worsens, healthcare remains in shambles, our education system is deteriorating, and more people are being thrown into poverty.
“Comparable nations like Indonesia, Vietnam, Egypt, and Bangladesh have borrowed as much as we did, and have made visible and verifiable improvements in critical areas of development. In ours, the situation is the reverse; we take loans for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals are without basic equipment. There is an absence of a visible, measurable impact from our borrowings. Where are these borrowings going?
“In recent years, we have spent over 70% of government revenue servicing debt, leaving almost nothing for investment in health, education, job creation and poverty alleviation for our people.
“This is why I have always insisted that borrowing should be strictly tied to productive ventures that will generate measurable economic returns, not for consumption or waste.
“Just days ago, Mr. President announced to the country that we have met our revenue for the year, yet he is on the news again today, attempting to borrow another $1.75 billion World Bank loan. This fiscal indiscipline must end.
“We must prioritise, and channel resources into productive sectors that create wealth and jobs. If we do not act with urgency, our children and youths will inherit nothing but debt and despair with no sustainable future.
“A New Nigeria is POssible.”
