Peter Obi, the Labour Party (LP) presidential candidate in the February 25, 2023 General Elections, has raised concerns about the Federal Government’s substantial borrowing and extravagant spending on non-essential procurements.
Obi warned that such a pattern, if not curtailed, could lead to economic wreckage.
The former Anambra State governor particularly criticized the government’s securitization of Ways and Means borrowing from the Central Bank of Nigeria (CBN), emphasizing that this practice is against the law and the CBN Act.
He highlighted the act’s stipulation that the federal government’s borrowing from the CBN should not exceed 5% of the previous year’s revenue.
Obi expressed his worry about the unsustainable trend of lavish spending funded by substantial borrowing, citing non-essential procurements and luxury projects labeled as “capital” expenditure in the 2024 budget.
He urged the government to halt this pattern, emphasizing the potential risks it poses to the nation’s economy and the well-being of its citizens.
The former governor called for a focus on rational economic management, stating that the administration’s current approach piles an unsustainable level of debt on the economy, burdening the populace. Obi also criticized the lack of transparency in accounting for the accumulated debts and questioned the specific projects being funded by the borrowed funds.
He raised red flags about the illegal securitization of Ways and Means borrowing, citing violations of the CBN Act. Obi highlighted the need for public accountability and transparency in disclosing the purpose and utilization of the borrowed funds.
He concluded by emphasizing the importance of addressing fundamental issues of rational economic management beyond political considerations.
