Former presidential candidate, Peter Obi has warned that Nigeria’s debt might exceed N150 trillion by the end of the year if not properly controlled.
This was disclosed by Obi via its official X account on Monday, stating that the volume of borrowings recorded in the first quarter of 2024 calls for prudent management of government finances.
He stated that “borrowing is not inherently problematic” provided its purpose is to increase productivity and promote economic growth and development.
Obi raised concern in a series of tweets noting that the number of borrowings reported in the first quarter of 2024 called for prudent management of government finances.
He 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.”
This follows the Debt Management Office released Nigeria’s total debt stock, revealing that the country’s debt profile rose by N24.33 trillion in the first three months of 2024 to N121.67 trillion from N97.34 trillion as of December 2023.
DMO underlined that Nigeria’s borrowing will continue as stipulated in the 2024 Appropriation Act, and “expects improvements in the Government’s Revenue to enhance debt sustainability.”
Obi however stated that borrowings are necessary to fund large government projects, but that when they are misallocated or misused, they hurt the country’s general economic health.
“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,” he said.
He did, however, call for a full audit of how the money was spent and how it affected the country’s economic direction. He believes that this will help to improve accountability, transparency, and good governance.
The former Anambra state governor also advised the government to be cautious and prudent in managing Nigeria’s debt, arguing that borrowing is used for beneficial objectives that benefit both the economy and residents.
