By Aduragbemi Omiyale
Presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has warned the federal government to stop borrowing for consumption, saying this is wrong.
The former Governor of Anambra State gave this warning on Wednesday while reacting to reports that the debt profit of Nigeria was nearing N42 trillion.
He advised President Muhammadu Buhari of the ruling All Progressives Congress (APC) to only borrow to invest in projects that have the capacity to grow the economy.
“As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures,” the politician and businessman said.
Speaking further, he stated that, “It’s ironical that states that received fiscal bailouts did not invest them properly; did not repay the loans and are still borrowing beyond their revenue earnings.”
He also advised the Central Bank of Nigeria (CBN) to stop lending funds to the federal government above the required rules.
“Also, it has become imperative to restrict Federal borrowings to the statutory 5% of the previous year’s revenue,” Mr Obi said in a series of messages posted on his verified Twitter page yesterday.
