- Presidential frontrunner, Peter Obi has revealed that all the money borrowed by the incumbent government has been a waste
- The Labour Party bannerman said the funds borrowed by the federal government have been majorly for consumption
- He, however, stated that there’s nothing wrong with borrowing and that these funds should be channeled towards production
United Kingdom, London – Peter Obi, the presidential candidate of the Labour Party has once again questioned the borrowing culture of President Muhammadu Buhari’s administration.
Obi while speaking at the Chatham House in London on Monday, January 16 said all the money borrowed by President Buhari’s administration since 2015 has been wasted and channelled into consumption.
At the question and answer session, Peter Obi stated that Nigeria’s debt profile is alarming rising from N15trn in 2015 to N75trn at present.
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He blamed this on the incessant borrowing culture of the current administration stating that these funds were channelled into consumption instead of production.
“There’s nothing wrong in borrowing. Borrowing is calabargistblogimate and every government I’ve studied in the world borrows, even Britain as we speak owes 70 per cent of their GDP. Every government I know, lives on borrowing.”
The Labour Party presidential candidate, however, acknowledged that borrowing is a necessity for every country to thrive but channelling the funds to the development of the economy makes the difference.
“Norway, with $1.4 trillion sovereign wealth, is owing. The economies of the world, even the biggest economy in the world, America, is owing almost 100 per cent of their GDP. The second-largest economy, China, is owing almost 70 per cent, while Japan is owing over 230 per cent of their GDP. But let me tell you the difference.
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“Japan is owing 230 per cent of their GDP but they invested the money to save their economy and even with that, Japan is still the largest holder of the US treasuries, so there’s something they can fall back on. So borrowing is not wrong.”
The former Anambra state governor further pledged that his administration if elected is ready to med all the loopholes and foster development across Nigeria.
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