By Gabriella Ogbu
Former Labour Party presidential candidate, Peter Obi, criticized the Nigerian government’s borrowing practices as “unproductive.” Speaking through his verified social media account on Tuesday, Obi expressed concerns about the escalating national debt, which he believes has had minimal impact on the country’s economy. He specifically highlighted the significant loans acquired during the previous administration, particularly the N30 trillion borrowed from the central bank. According to Obi, the government had the opportunity to halt the borrowing spree, asserting that the accumulated debt has failed to yield tangible benefits for the nation.
Obi’s remarks coincide with the recent disclosure of Nigeria’s debt profile by the Debt Management Office (DMO). The DMO projected that by the end of 2023, the country’s public debt would surge by 10% to reach N97.3 trillion. Of this total, N59.12 trillion comprises domestic debt, while N38.22 trillion constitutes external debt. Obi emphasized the significant financial burden posed by debt servicing, noting that Nigeria spent a staggering N10 trillion in 2023 alone on repaying both external and domestic debts.
The former governor of Anambra highlighted the adverse implications of the government’s borrowing practices. He pointed out that the amount spent on debt servicing exceeded the combined budget allocations for crucial sectors such as defense, education, health, and infrastructure. Obi emphasized the need for the government to reassess its borrowing approach and scrutinize the purposes of previous loans. He suggested a “de-acceleration” of borrowing to curb the escalating national debt and ensure more prudent financial management.
