Peter Obi, the presidential nominee for the Labour Party, has encouraged both the federal and state governments to quit borrowing money for personal consumption. Borrowing should only be used to finance “productive ventures,” according to a series of tweets sent by Obi. The former governor of Anambra State criticized states that received financial bailouts but did not “fully” invest the money.
“As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other pro
ductive ventures,” he tweeted.
The states that received fiscal bailouts, according to Obi, did not invest them correctly, did not repay the loans, and are now borrowing over their revenue earnings. Additionally, it has become crucial to keep federal borrowing within the statutory limit of 5% of revenue from the preceding year. – PO.”
According to sources on the website of the Budget Office of Nigeria, Buhari’s administration has spent at least N54.98 trillion on budget execution since taking office but has only provided N24.39 trillion in the financing, leaving a deficit of N30.58 trillion. The current administration spent at least N23.66 trillion on staff expenditures, pensions, overhead costs, the presidential amnesty program, various service-wide votes, and special interventions, according to a breakdown of some of the spending.
Additionally, the administration has spent at least N14.13 trillion paying domestic and foreign loans, with at least N10.47 trillion going toward capital expenditures. As of March 2022, the country’s entire debt profile reached N41.06 trillion, according to the Debt Management Office.
