Peter Obi warns the FG against taking out any more loans
The Federal Government, under the direction of President Muhammadu Buhari, has been cautioned against taking on more debt for consumption by Mr. Peter Obi, the contender for president from the Labour Party.
On his verified Twitter account, @PeterObi, Obi tweeted the warning in a series yesterday.
He declared: “Nigeria must urgently stop borrowing for consumption and only borrow to invest in initiatives that promote regenerative development and other profitable endeavors.
It is ironic that states that received fiscal bailouts did not pay back the loans and are currently borrowing more than they can afford.
Additionally, it has become crucial to keep federal borrowing within the statutory cap of 5% of revenue from the preceding year.
You may remember that Nigeria’s debt servicing, which has reached N1.94 trillion, has exceeded the country’s earnings by N310 billion, according to the Minister of Finance, Zainab.
This is despite the fact that the projected cost of gasoline subsidies is anticipated to reach N6.72 trillion by 2023.