PETER OBI CRITIQUES NIGERIA'S RISING DEBT BURDEN, CALLS FOR PRUDENT ECONOMIC MANAGEMENT

The Nigerian Senate has approved an additional $21 billion, €2.2 billion, and ¥15 billion in external borrowing for the 2025-2026 fiscal cycle. This brings the total debt to approximately N187 trillion, with concerns that it may exceed N200 trillion by the end of 2025. The debt-to-GDP ratio has also increased, with the government borrowing nearly 70% of the previous GDP and about 50.16% of the new GDP after rebasing.
The country's debt burden has been rising exponentially, with little to show for it in critical areas such as education, healthcare, electricity generation, security, and poverty reduction. The government has borrowed heavily, but the impact on the economy and the lives of Nigerians has been minimal. The country's human development indicators are low, with education and healthcare underfunded, and security of lives and property deteriorating.
The country's infrastructure is also in a state of decay, with about 135,000km of roads remaining unpaved and unmotorable. The power sector is another example, with less than 5,000 MW supplied for over 200 million Nigerians. This has resulted in a significant decline in the quality of life for Nigerians, and has hindered economic growth and development.
The poverty rate in Nigeria is alarming, with about 133 million (63%) Nigerians classified as multidimensionally poor. Unemployment is also on the rise, and the country is facing a malnutrition crisis, with 652 children dead in Northern Nigeria. This is a clear indication that the government's economic policies are not working, and that a new approach is needed.
According to Peter Obi, the government needs to adopt a more prudent approach to economic management, cutting the cost of governance, blocking leakages, investing in human capital, and building a productive economy. Borrowing should be tied to productive investments with measurable outcomes, and transparency and accountability should be prioritized. This will ensure that the country's debt burden is manageable, and that the economy is able to grow and develop in a sustainable way.
Peter Obi's critique of Nigeria's rising debt burden is a call to action for the government to re-examine its economic policies and priorities. The government needs to take urgent action to address the issue of unsustainable debt, and to ensure that borrowing is tied to productive investments that will benefit the country and its citizens. This will require a fundamental shift in the way the government approaches economic management, and a commitment to transparency, accountability, and prudent decision-making.
Nigeria's rising debt burden is a threat to economic stability, and the government needs to take urgent action to address the issue. The country cannot continue to borrow recklessly while poverty deepens and public trust erodes. It's time to stop fiscal indiscipline and build a new Nigeria, where leadership is responsible, development is people-centered, and every kobo borrowed or spent delivers a measurable impact. By adopting a more prudent approach to economic management, and prioritizing transparency and accountability, Nigeria can ensure a brighter future for its citizens, and achieve sustainable and inclusive development and growth.

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