Peter Obi cries out over use of N10 trillion to service unproductive debts

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The Presidential candidate of the Labour Party in the 2023
general election, Peter Obi has raised concerns again at the nation’s rising
debt profile saying that N97.3 trillion is on the high side and worrisome.

 

According to the former Anambra State Governor, even more
disturbing is the fact that most of these debts are not deployed for
production.

 

Obi described as dangerous to growth, the use of nearly N10
trillion to service unproductive debts.

 

Explaining further his fears, Obi wrote in his X handle on
Tuesday saying “I remain concerned about our borrowings, considering their
galloping situation over the years, and its concomitant effects on the economy.

 

More worrisome is the fact that there has been no
corresponding visible usage or investments as required by the law, to show
their impact on the nation.

 

“At the end of the second quarter, Q2, of 2023, our debt
stood at N87.9 trillion, which was very disturbing to us, because we were at a
loss on what we did with the huge debt, especially the over N30 trillion ways
and means borrowed by the last administration, which for me, would have been
the end of borrowing without any visible and corresponding investment that will
benefit the nation.

 

“Even more worrisome is that between the end of the third
quarter, Q3, and the end of the fourth quarter, Q4, of 2023, about N10 trillion
was added to our debt profile, which has now taken our debts to N97.3 trillion,
again, without any corresponding visible and verifiable utilization of such
debts, to the and best of my knowledge, is the highest ever borrowed in one
quarter.

 

“Last year, 2023, our total debt servicing for domestic
debts stood at N4.4 trillion and that of external debt servicing was $3.5
billion, which is about N4.9 trillion. In effect, approximately N10 trillion is
now set aside to service unproductive debts.

 

“The implication is that what we borrowed in a quarter about
N10 trillion and what we spend on debt servicing, which is also about N10
trillion, are each more than the combined budgetary allocation for the four
highest priority areas, which are; defence, N3.25trn, Education N2.18trn,
Health (1.33trn), and Infrastructure, N1.32trn.

 

“My appeal to the government of our nation is to please
de-accelerate the borrowing, and let us first re-evaluate to see what has been
achieved with our previous loans so far and be able to make better decisions
for the good of the nation.

 

“In the New Nigeria of our dream, our scarce resources will
not only be duly accounted for but will be productively and prudently managed
in moving our nation from consumption to production. 



Source link: Nigerianeye

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