Former Fidelity Bank chairman, Peter Obi, has condemned the Federal Government's use of loan under President Muhammadu Buhari. Obi's recent remark follows his comments last week that President Buhari should end his wasteful economy after Nigeria slumped into recession.
In his latest statement on Arise TV, Obi said Nigeria hasn't been borrowing to increase or support productivity, rather, the loan obtained by President Buhari's administration has been spent on consumption. Nigeria currently has a debt of over NGN31 trillion.
The country is planning to borrow more, with Nigeria eyeing $1.5 billion credit from the World Bank and more from other sources. The government has said it needs to borrow to fund the 2021 budget as recession bites harder amidst COVID-19 pandemic, rise in inflation and cost of living.
But Obi, who contested in the 2019 Presidential election in Nigeria as Atiku Abubakar's running mate, said Nigeria can't borrow its way out of its current situation,
"We cannot borrow our way out of our situation. Our biggest challenge is that we've been borrowing for consumption and not for productivity," Obi said.
Obi had advised that the President Buhari-led administration cut government spending due to the recession Nigeria just entered following a downturn of the economy in Q2 and Q3 of this year.
Obi said President Buhari should change the economy from a wasteful consumption-based one to a productive economy in order to exit the recent recession which will be the second in five years.
"For Nigeria to pull itself out of this economic recession, the 2nd in the last 5 years, there's a compelling need to cut the pork out of the budget and expenditure at all levels of govt and redirect the economy from a wasteful consumption-based one to a productive economy," Obi wrote on his known Twitter account.