The former governor of Anambra, Peter Obi, has said borrowing for consumption is Nigeria’s major challenge.
Obi stated this in a tweet on Thursday.
According to the former governor, Nigeria can borrow funds but they should be used judiciously for investment.
He pronounced that the mismanagement of borrowed funds has cost the nation so much, and for that reason, the federal government should enforce a law to regulate borrowing.
“There is nothing wrong with borrowing. But what we need to do is to put a law in place that if we must borrow, it must strictly be for investment in areas of growth,” he wrote.
“Our past and continued mismanagement of borrowed funds and borrowing for consumption are the major contributors to the monumental economic challenges confronting Nigeria today.
“Today, we are spending 90% of our revenue servicing debts because, ironically, our borrowed funds were mismanaged and have not been properly invested.
“If the funds borrowed were invested in critical areas of development, education, health and poverty alleviation, Nigeria would have developed far beyond what it is today.
“Many countries have built robust economies with borrowed funds. We can do the same if only we enthrone visionary and committed leadership.”
In November 2021, Patience Oniha, the Debt Management Office (DMO) director-general, made it known that public debt was influential in helping Nigeria bounce back from recession.
Oniha said government recognises the need for carefulness when borrowing, especially with mounting public debt and swifly increasing debt service obligations.