N121.86trn debt: Provide breakdown on utilisation of borrowed funds, Peter Obi tells FG

Peter Obi, a presidential candidate of the Labour Party in the 2023 election, has asked the government to provide a detailed breakdown on the utilisation of borrowed funds.

Obi’s demand followed his concern on the rapid accumulation of debt in Nigeria — which he described as “alarming” in a post on X on Monday.

He said the government’s borrowing reached a staggering N121.86 trillion at the end of the first quarter (Q1), warning that if the current trend persists, the total amount borrowed could exceed N150 trillion by the end of the year.

“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.

“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.

“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.”

Obi said the borrowing of several trillions in just three months shows the urgent need for prudent financial management.

The former Anambra governor said if the borrowed funds are spent on consumption or misallocated, the nation’s economic situation will worsen, sustaining a cycle of debt and impeding its ability to achieve sustainable economic growth and development.

He, however, said directing the funds towards productive ventures like infrastructure, education, healthcare, and entrepreneurship would yield beneficial outcomes for the economy and citizens in the long run.

The politician urged policymakers and stakeholders to exercise caution and prudence in managing the nation’s debt and ensure that borrowing is utilised for productive purposes that benefit the economy and citizens.

This, he said, would foster sustainable economic growth, development, and prosperity for all Nigerians in the future.

Obi added that the nation’s stability and prosperity depend on the prudent management of resources.