Obi Expresses Concern Over Use Of N10 trillion To Service Unproductive Loans, Says N97.3 trillion Debt Worrisome

Peter Obi, the main opposition voice and Labour Party Presidential candidate in the 2023 general election, has screamed again about the country’s rising debt profile, claiming that N97.3 trillion is excessive and worrying.

Even more concerning, according to the former Anambra state governor, is that the majority of these debts are not being used to produce goods.

Obi described the use of nearly N10 trillion to service unproductive debts as a threat to growth.

Obi expressed his concerns further on Tuesday, writing in his X handle, “I remain concerned about our borrowings, given their galloping situation over the years, and the concomitant effects on the economy.” More concerning is the lack of corresponding visible usage or investments, as required by law, to demonstrate 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 concerning to us because we were at a loss as to what we did with the massive debt, particularly the over N30 trillion ways and means borrowed by the previous administration, which for me would have marked the end of borrowing without any visible and corresponding investment that would benefit the nation.

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

“In 2023, our total debt servicing for domestic debts was N4.4 trillion, while external debt servicing was $3.5 billion, or approximately N4.9 trillion. In effect, approximately N10 trillion has been 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, also about N10 trillion, are both greater than the combined budgetary allocation for the four highest priority areas, which are defence (N3.25 trillion), education (N2.18 trillion), health (1.33 trillion), and infrastructure (N1.32 trillion).

“My appeal to our country’s government is to please slow down the borrowing and allow us to re-evaluate what we have accomplished with our previous loans so far to make better decisions for the good of the country.

“In the New Nigeria of our dreams, our scarce resources will be not only properly accounted for, but also productively and prudently managed as we transition from consumption to production.