ENUGU, Nigeria (VOICE OF NAIJA)- Presidential candidate of the Labour Party (LP) in the 2023 election, Peter Obi has called on the Federal Government of Nigeria to provide a detailed breakdown of how borrowed funds are being utilized, amid a significant increase in government borrowing.
Obi expressed concern over the rapid accumulation of debt, which reached N121.86 trillion in the first quarter of 2023, warning that the total could surpass N150 trillion by year-end if the current trend continues.
Obi made the demand in a post on X on Monday while decrying significant increase in government borrowing.
While acknowledging that borrowing can be beneficial for economic growth and development, Obi emphasized the need for prudent management and transparency in the use of borrowed funds.
He urged policymakers to ensure that funds are allocated efficiently and effectively to drive economic growth, create jobs, and improve living standards.
Obi’s request for accountability is rooted in the law governing borrowing, which requires detailed explanations of the intended use and timing of borrowed funds.
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He cautioned that misallocating borrowed funds could worsen the economic situation, perpetuate a cycle of debt, and hinder sustainable economic growth and development.
He said, “I have consistently maintained that borrowing is not inherently problematic, as long as it is utilized for productive purposes that drive economic growth and development,” Obi said.
“The recent report at the end of the first quarter indicates a significant increase in our government’s borrowing, reaching a staggering N121.86 trillion.
“This rapid accumulation of debt is alarming, and 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.
“On the other hand, if the funds are channelled into productive endeavours such as infrastructure development, education, healthcare, and entrepreneurship, we can expect positive outcomes that benefit our economy and citizens in the long run.
“As I recall, the law governing borrowing is explicit, requiring detailed explanations of the intended use, timing, and other relevant parameters.
“It is essential to ensure that borrowed funds are allocated efficiently and effectively to drive economic growth, create jobs, and improve the standard of living of the majority of our citizens.
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“I respectfully request same for accountability for the massive borrowings, which have burdened our nation’s future.
“For the sake of our children and unborn generations, transparency and good governance, a detailed breakdown of how these funds have been utilized and demonstrate their tangible impact on our country’s growth and development should be provided.”
By demanding transparency and good governance, Obi seeks to ensure that borrowed funds are utilized for the betterment of Nigeria’s economy and citizens, promoting sustainable growth, development, and prosperity for generations to come.