Nigeria’s Debt Crisis Deepens: Peter Obi Highlights N10 Trillion Spent On Servicing Unproductive Debts

Nigeria’s Debt Crisis Deepens: Peter Obi Highlights N10 Trillion Spent On Servicing Unproductive Debts....KINDLY READ THE FULL STORY HERE▶

In a recent post on his social media page, the ex-Anambra governor expressed apprehension over the situation, indicating that in 2023, approximately N4.4 trillion was used to service domestic debts, while about $3.5 billion (equivalent to roughly N4.9 trillion) was allocated to external debt servicing. Consequently, he argues, the nation is spending roughly N10 trillion on servicing debts he perceives as unproductive.

Obi highlights that the amount borrowed within a quarter is equivalent to about N10 trillion, which aligns with the sum allocated for debt service. These figures, he emphasizes, surpass the combined budgetary allocations for crucial sectors like defense, education, health, and infrastructure.

The Debt Management Office’s report on March 22 noted that Nigeria’s total public debt soared to N97.34 trillion, increasing by N9 trillion in the fourth quarter of 2023. Obi expresses concern about the lack of visible utilization or investments corresponding to these borrowings, in line with legal requirements to demonstrate their impact on national development.

He further criticizes the significant increase in debt from the third to the fourth quarter of 2023, amounting to approximately N10 trillion. According to Obi, this surge has propelled Nigeria’s debts to a staggering N97.3 trillion, yet there’s no discernible evidence of their utilization for the nation’s benefit. This, he claims, marks the highest-ever borrowing within a single quarter.

In summary, Peter Obi underscores Nigeria’s mounting debt burden, its allocation towards servicing what he deems unproductive debts, and the absence of visible investments corresponding to these borrowings, casting doubts on their impact on the nation’s development.

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