Peter Obi Raises Alarm: Nigeria’s Unproductive Debts Costing N10 Trillion In Servicing

Peter Obi Raises Alarm: Nigeria’s Unproductive Debts Costing N10 Trillion In Servicing

Peter Obi, a former Anambra governor and presidential candidate, has raised concerns about Nigeria’s debt situation, stating that the country is spending a substantial amount servicing “unproductive” debts. In a recent post on his X page, Obi revealed that approximately N10 trillion is being spent by the federal government on servicing debts that do not contribute to national development……READ ALSO Daniel Bwala Reveals: Peter Obi’s Haunting By A Ghost As LP Departure Threat Escalates

Highlighting the figures, Obi mentioned that in 2023, the total debt servicing for domestic debts amounted to N4.4 trillion, while external debt servicing was $3.5 billion, which is about N4.9 trillion. This totals to approximately N10 trillion spent on servicing unproductive debts.

He further emphasized that the amount borrowed by the government in a quarter matches the expenditure on debt service, each totaling about N10 trillion. These figures, according to Obi, exceed the combined budgetary allocation for crucial sectors such as defence, education, health, and infrastructure.

Obi expressed deep concern over the lack of visible usage or investments corresponding to the borrowed funds, as required by law. He noted that the rapid increase in debt, without tangible benefits to the nation’s development, is alarming. Additionally, he criticized the lack of transparency regarding the utilization of borrowed funds.

According to the Debt Management Office (DMO), Nigeria’s total public debt rose to N97.34 trillion in the fourth quarter of 2023, primarily due to new domestic borrowing by the federal government to finance the deficit in the 2024 budget.

Obi urged for greater accountability and transparency in debt management, emphasizing the need for visible and verifiable utilization of borrowed funds to ensure national development and prevent further escalation of debt.

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