Money borrowed since 2015 has been thrown away, says Obi

The presidential candidate of the Labour Party, Peter Obi, on Monday hit the present administration in the country, saying the money borrowed since 2015 for the improvement of the economy was thrown away.

Obi spoke at the Chatham House in London on Monday.

Obi, while analysing the country’s rising debt, said Nigeria had grown the N15tn  debt as of 2015 to N75tn presently, adding that the sharp rise in debt was as a result of borrowing for consumption, submitting that the entire money was “thrown away.”

While stating that borrowing is essential for any economy to thrive, Obi reiterated that money borrowed must be put into the development of the economy and invested in production.

“There’s nothing wrong in borrowing. Borrowing is legitimate and every government I’ve studied in the world borrows; even Britain as we speak owes 70 per cent of its GDP. Every government I know lives on borrowing.

“Norway, with $1.4tn sovereign wealth, is owing. The economies of the world, even the biggest economy in the world, America, is owing almost 100 per cent of its GDP. The second largest economy, China, is owing almost 70 per cent, while Japan is owing over 230 per cent of its GDP. But let me tell you the difference.

“Japan is owing 230 per cent of their GDP but they invested the money to save their economy and even with that, Japan is still the largest holder of the US treasuries, so there’s something they can fall back on. So borrowing is not wrong.

“But what has happened is that when you borrow for consumption, you have a crisis. Nigeria in 2015 had a per capita income of $2,500, we were owing about N15tn. Today, with central bank’s ways and means, we are owing about N75tn, so we have grown that debt profile by over 400 per cent. That means that the money we borrowed was thrown away.”

Obi further stated that if elected, he would fight corruption to ensure that Nigeria becomes a country where its citizens are proud to hold its passport and foreign investment thrives.

“We will fight and stop corruption. The first thing about stopping corruption is yourself, if you’re not involved, your wife, family is not involved, those around you are not involved, then you will lose it by over 50 per cent. We are committed, we can’t disappoint these youths, we must build a new Nigeria.

“Investors will come back, those who left and those who are leaving will come back, we want to bring them back. Nigerians are prepared to come back if they can find that they have a country to go back too. This green passport, Nigerians must be proud to use it again,” he said.

PUNCH