The 2023 presidential candidate of the Labour Party, Peter Obi, has called on the Federal Government to provide a detailed breakdown of how borrowed funds are being utilized. Obi made this demand in a post on X on Monday, expressing concern over the significant increase in government borrowing, which reached a staggering ₦121.86 trillion by the end of the first quarter (Q1) of the year.
Obi warned that if the current borrowing trend continues, the total borrowed amount could exceed ₦150 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. He emphasized the need for prudent financial management, noting that the rapid accumulation of debt is alarming.
“The recent report at the end of the first quarter indicates a significant increase in our government’s borrowing, reaching a staggering ₦121.86 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 ₦150 trillion by the end of the year.”
Obi stressed the importance of borrowing for productive purposes rather than consumption, warning that misallocation of funds could worsen the economic situation, perpetuate a cycle of debt, and hinder sustainable economic growth and development.
“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.”
However, he noted that if funds are channeled into productive endeavors such as infrastructure development, education, healthcare, and entrepreneurship, they could yield positive outcomes for the economy and citizens in the long run.
Obi also recalled the legal requirements for borrowing, which mandate detailed explanations of the intended use, timing, and other relevant parameters. He urged the government to ensure that borrowed funds are allocated efficiently and effectively to drive economic growth, create jobs, and improve the standard of living for the majority of citizens.
“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 the same for accountability for the massive borrowings, which have burdened our nation’s future.”
Obi called for transparency and good governance, advocating for a detailed breakdown of how the borrowed funds have been utilized and their tangible impact on the country’s growth and development.
“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 former Anambra State governor urged policymakers and stakeholders to exercise caution and prudence in managing national debt, ensuring that borrowed funds are used for productive purposes.
“By doing so, we can promote sustainable economic growth, development, and prosperity for all Nigerians for generations to come,” Obi concluded.
