We are spend 90% of revenue to service debts because borrowed funds were mismanaged – Peter Obi

By our reporter| Borrowing for consumption is one of the major contributors to Nigeria’s economic challenges, a former governor of Anambra State, Peter Obi has said.

The former vice presidential candidate of the opposition Peoples Democratic Party in the 2019 presidential election who made the assertion in a series of tweets on Thursday, said Nigeria is spending 90% percent of its revenue in servicing debts because the funds borrowed are mismanaged.

“Our past and continued mismanagement of borrowed funds and borrowing for consumption are the major contributors to the monumental economic challenges confronting Nigeria today.

“Today, we are spending 90% of our revenue servicing debts because, ironically, our borrowed funds were mismanaged and have not been properly invested.

“If the funds borrowed were invested in critical areas of development, education, health and poverty alleviation, Nigeria would have developed far beyond what it is today,” Obi tweeted.

“There is nothing wrong with borrowing. But what we need to do is to put a law in place that if we must borrow, it must strictly be for investment in areas of growth.

“Many countries have built robust economies with borrowed funds. We can do the same if only we enthrone visionary and committed leadership.”

Obi has repeatedly criticised the Federal Government for borrowing and in a widely publised interview in 2021, said Nigerian citizens are getting poorer because the government is borrowing for the wrong reasons.

According to him, the nation’s Gross Domestic Product (GDP) cannot be growing while the people are getting poorer.

He believes the growth Nigeria needs is one that “pulls people out of poverty by making the people have disposable income and be able to feed themselves.”