Former Anambra State Governor and Labour Party Presidential Candidate in the 2023 elections, Peter Obi, has raised concerns over President Bola Tinubu’s recent securitisation of the N7.3 trillion ‘ways and means’ facility from the Central Bank of Nigeria (CBN). Obi deemed the action illegal and criticized the National Assembly’s approval of the massive borrowing.
Obi recalled that just 26 days before the end of its eight-year tenure, the Buhari administration secured Senate approval for a N22.7 trillion ways and means borrowing from the CBN. Expressing dismay, he noted that in seven years, CBN lending to the Buhari government had surged by 2700%, a clear violation of the CBN Act.
Despite the questionable legality of excessive ways and means borrowing, Obi highlighted that the National Assembly approved Tinubu’s administration’s request for a N7.3 trillion securitisation of the existing facility just before considering the 2024 budget proposals. Adding to the concern, Tinubu sought approval on December 30, 2023, to securitise the outstanding N7.3 trillion debt owed to the CBN.
Obi emphasized the need for transparency, questioning the purpose of the borrowings and expressing worry about the continuous securitisation of ways and means borrowing from the CBN, which violates the law. He pointed out that the CBN Act prohibits the conversion of borrowings to debt or securitisation if the CBN is the underwriter.
The former governor warned that the securitisation of illegal borrowings and their transfer to Nigeria’s debt stock poses a danger to the country’s economic future, especially when the funds are not transparently utilized or accounted for.
Obi raised crucial accountability questions, urging the federal government to disclose the specific projects funded by the N7.3 trillion borrowing. He criticized the trend of lavish spending on nonessential procurements labeled as ‘capital’ expenditure, funded by accumulating debts.
In a broader context, Obi stated that Africa’s growth and development would continue to be hindered unless leaders address the continent’s leadership failure. He emphasized that despite Africa’s abundant human and natural resources, leadership failure remains a significant challenge.
The former governor called for rational economic management, expressing concern that the current administration is piling an unsustainable level of debt on the economy, burdening the already distressed populace.
Obi’s remarks came during his participation in the convention titled ‘Igniting the Voices of Africa’ in Accra, Ghana, where he joined other influential African voices advocating for change and an end to the continent’s leadership challenges.
