The Presidential candidate of the Labour Party, Peter Obi, has renewed his campaign against borrowing for the purpose of consumption by both state and Federal Governments.
While the former Anambra State Governor has never hidden his dislike for borrowing, he has always advocated that governments should only borrow for investment in developmental project and other productive ventures.
In a series of tweets shared on his Twitter page on Monday, the frontline presidential candidate, for the umpteenth time, advised governments at both federal and state levels to desist from taking loans to finance consumption.
He also criticised states that received bailout funds but refused to “properly” plow it into investments.
“As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures,” Obi tweeted.
He also
added that, “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. – PO.”
Pulse earlier reported that Nigeria’s repayment of debt exceeded the revenue generated within the first four months of the year 2022, according to a fiscal performance report.
The report showed that the indices defied the revenue projection of the country, which is solely dependent on oil and gas.
