Obi Laments Tinubu’s Fresh $1.75bn Loan, Says, ‘Our Children Will Inherit Only Debt, Despair’

Chuks Okocha in Abuja

The presidential candidate of the Labour Party (LP), in 2023 election, Mr. Peter Obi has warned that if urgent steps are not taken to put a stop on what he described as “Nigeria’s reckless borrowing culture” the country’s children risk inheriting nothing but debt and despair.

He particularly took a swipe at President Bola Tinubu’s fresh request for a $1.75 billion World Bank loan despite recently announcing that government revenues for the year had been met in August.

Obi therefore cautioned the Tinubu-led government against continuing on the reckless path of borrowing without productivity.

Obi, who stated these in a statement he shared on his X handle, said he had received numerous messages about the nation’s growing debt while away on a short leave, stressing that the fact that even government officials had begun expressing concerns over the country’s rising debt profile, signalled a dangerous trend which he has consistently warned against.

He said while there was nothing wrong with borrowing, he quickly pointed out that what matters was ensuring that every loan translates into real and measurable productivity.

Obi noted that Nigeria’s tragedy lies in the fact that the trillions that had been borrowed cannot be traced to any meaningful impact in the critical sectors for which they were supposedly borrowed.

In his words, “The more we borrow, the more poverty deepens, unemployment worsens, healthcare remains in shambles, our education system is deteriorating, and more people are being thrown into poverty.”

Obi compared Nigeria’s situation with countries like Indonesia, Vietnam, Egypt, and Bangladesh, which he noted borrowed heavily but invested wisely in productive sectors.

He further added: “But, in ours, the situation is the reverse; we take loans for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals are without basic equipment.”

“There is an absence of a visible, measurable impact from our borrowings. Where are these borrowings going?” he asked.

Obi specifically expressed concern that over 70 percent of government revenue was being spent on debt service, while leaving virtually nothing for critical investments in education, health, job creation, and poverty alleviation.

He said; “I have always insisted that borrowing should be strictly tied to productive ventures that will generate measurable economic returns, not for consumption or waste.

“Just days ago, Mr. President announced to the country that we have met our revenue for the year, yet he is on the news again today, attempting to borrow another $1.75 billion World Bank loan.

“This fiscal indiscipline must end. The government must prioritise channelling resources into productive sectors that create wealth and jobs. The current trajectory is unsustainable.

“If we do not act with urgency, our children and youths will inherit nothing but debt and despair with no sustainable future. A New Nigeria is POssible,” Obi insisted.