11th August, 2022
The Labour Party’s Presidential candidate, Dr. Peter Obi has said Nigeria must stop borrowing for consumption as a matter of urgency.
He said if the country must borrow, it must be to invest in regenerative development projects and other productive ventures.
According to Obi, it is ironical that States that received fiscal bailouts did not invest them properly and did not repay the loans.
He said despite that, such states were still borrowing beyond their revenue earnings.
Obi, in series of tweets, added that it had become imperative to restrict Federal borrowings to the statutory 5% of the previous year’s revenue.
He tweeted: “As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures.
“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.
“Also, it has become imperative to restrict Federal borrowings to the statutory 5% of the previous year’s revenue.”