Peter Obi, former governor of Anambra State and Labour Party candidate in the 2023 presidential election, recently warned about Nigeria's rising debt.
In a statement on his official X handle on Monday, Obi expressed concern that if the current borrowing rate continues, Nigeria’s debt could exceed N150 trillion by the end of the year. This statement came after learning that the country's debt had already reached N121.86 trillion.
Obi pointed out that borrowing trillions in just three months underscores the urgent need for better financial management.
He emphasized that borrowing itself is not inherently problematic if it is used to foster economic growth. However, he cautioned that using borrowed funds for consumption or misallocation would exacerbate the nation's economic troubles.
On his page, Obi wrote, "If this borrowing trend continues at the current rate, we can expect the total to surpass N150 trillion by the end of the year.
The fact that several trillions was borrowed in just three months highlights the urgent need for prudent management of our finances. 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."
Obi’s remarks highlight his concern about the implications of Nigeria's increasing debt. He stresses the importance of using borrowed funds effectively to ensure they contribute to economic progress rather than leading the country deeper into financial instability.
His statement is a call for more responsible financial management to avoid a worsening economic situation and to break the cycle of debt that could hinder sustainable development.