Obi Slams FG's Lavish Borrowing and Profligate Spending

 

Former Anambra State Governor and Labour Party presidential candidate Peter Obi has condemned the federal government's "disturbing pattern of huge borrowing and profligate spending on nonessential procurements." In a statement titled 'Debt and Waste as Economic Policy,' Obi warned that this trend is unsustainable and will wreck the economy. Obi criticized the government's securitization of Ways and Means borrowing from the Central Bank of Nigeria (CBN), which he said violates the CBN Act. He also expressed concern about the recently approved N7.3 trillion securitization of existing ways and means facility and the $7.8 billion and €100 million loans. The former governor emphasized the need for rational economic management and called on the current administration to address the issue. He expressed concern that the government's actions are burdening the populace with harsh economic policies without providing compassionate cushioning policies. Obi traced the problem back to the previous administration, highlighting the significant increase in CBN lending to the Buhari government. He called for more transparency and accountability in government borrowing and spending practices. Obi's statement comes amid concerns from economists and analysts about Nigeria's rising debt profile and its implications for the economy. The country's debt-to-GDP ratio has been steadily increasing, raising concerns about debt sustainability. The federal government has defended its borrowing, arguing that it is necessary to finance infrastructure and other development projects. However, critics argue that the government needs to exercise fiscal discipline and prioritize prudent spending. Obi's criticism of the government's economic policies is likely to resonate with many Nigerians who are grappling with the rising cost of living and economic challenges. The former governor's call for transparency and accountability in government spending is also likely to find support among citizens concerned about the country's economic direction.