CEM REPORT | The Presidential candidate of the Labour Party, Peter Obi, has warned the Federal Government against further borrowing for consumption.
Obi passed the warning to the President Muhammadu Buhari-led administration via his verified Twitter handle on Wednesday.
He advised the federal government to only borrow to invest in productive ventures adding that such borrowing should not be more than 5% of the previous year’s revenue.
“As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures.
“It’s ironical that states that received fiscal bailouts did not repay the loans and are still borrowing beyond their revenue earnings.
“Also, it has become imperative to restrict federal borrowings to the statutory 5 per cent of the previous year’s revenue.”
Recall a recent CEM report where the Minister of Finance, Zainab Ahmed announced that Nigeria’s debt service had hit NN1.94 trillion, which is in excess of N310 billion from revenue earnings.
This is even as the projected expenditure on fuel subsidies is expected to hit N6.72 trillion by 2023.