Peter Obi, the presidential candidate of the Labour Party in the 2023 general election, has raised alarm over Nigeria’s escalating debt profile, which he believes has reached a worrisome level of N97.3 trillion. Expressing his apprehension, Obi highlighted that a significant portion of these debts was not utilized for productive purposes, labeling the allocation of nearly N10 trillion to service unproductive debts as dangerous.
In a statement shared on his social media handle, Obi underscored his concerns regarding the lack of visible investments corresponding to the nation’s mounting debt. He pointed out that Nigeria’s debt had surged from N87.9 trillion in the second quarter of 2023 to N97.3 trillion by the end of the fourth quarter of the same year, with approximately N10 trillion added in just one quarter. This rapid accumulation of debt, coupled with the absence of tangible benefits, raises serious questions about the management of borrowed funds.
Obi emphasized the disproportionate allocation of resources to service unproductive debts, noting that the amount spent on debt servicing exceeded the combined budgetary allocations for critical sectors such as defense, education, health, and infrastructure. He urged the government to exercise restraint in borrowing and called for a thorough evaluation of previous loans to inform better decision-making.
In envisioning a “New Nigeria,” Obi advocated for the prudent and productive management of scarce resources, emphasizing the transition from consumption-driven to production-focused economic policies. He underscored the importance of accountability and efficient resource utilization in steering the nation towards sustainable development.
Obi’s remarks reflect growing concerns among stakeholders regarding Nigeria’s debt sustainability and the need for responsible fiscal management to safeguard the country’s economic future.
