SiteLock

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

2 years ago
1 min 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.

Join our WhatsApp Channel

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.

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.

“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.”

content

+ posts


MOST READ

Follow Us

Latest from Business

Why Inflation Is Rising Rapidly In Nigeria

Why Inflation Is Rising Rapidly In Nigeria

Inflation in Nigeria: An Alarming Trend Inflation in Nigeria has reached a staggering 33.88% in October, rising from 32.7% the previous month. This sharp increase, driven by factors like currency depreciation, escalating

Don't Miss

Tinubu's Quest For Fresh N tn Foreign Loan May Push Nigeria’s External Debt To $bn By Year End

Quest For Fresh N1.767tn Foreign Loan May Push Nigeria’s Debt To $45bn

There are concerns that Nigeria’s external debt could