In a recent statement, presidential candidate Peter Gregory Obi expressed deep concern over the economic policies pursued by the Buhari administration in its waning days. Obi highlighted the approval of a substantial N22.7 trillion Ways and Means borrowing from the Central Bank of Nigeria (CBN) within the last 26 days of the administration’s eight-year tenure. This move, escalating CBN lending by 2700% over seven years, raised serious legal and accountability issues, as it violated the CBN Act.
Obi criticized the National Assembly’s approval of the new Tinubu administration’s request for a N7.3 trillion securitization of the existing ways and means facility, stressing the illegality of this action. Furthermore, he pointed out the lack of transparency regarding the purpose of the approved borrowings totalling $7.8 billion and €100 million, all secured within a seven-month tenure.
The presidential candidate emphasized the need for detailed explanations on the utilization of these funds, especially given the legal constraints imposed by the CBN Act. He underscored the potential dangers of securitizing illegal borrowings, citing the increased debt burden on the nation without transparent and productive utilization.
Obi questioned the nature of the so-called ‘capital’ projects funded by the N7.3 trillion borrowing, raising concerns about a pattern of profligate spending on nonessential procurements labelled as ‘capital’ expenditure. He warned against the unsustainable trend of lavish borrowing and spending, particularly on luxury projects, which could adversely impact the economy in the near future.
Expressing worry about the administration’s seemingly inadequate attention to rational economic management, Obi called for a departure from partisan grandstanding and urged a focus on fundamental issues. He cautioned that the current trajectory of accumulating unsustainable levels of debt could further burden the already distressed populace. In conclusion, Obi stressed the urgency of addressing these economic challenges for the overall well-being of the nation.
Debt and Waste as Economic Policy.
Barely 26 days to the end of its eight-year tenure, the Buhari administration got the Senate to approve a N22.7 trillion Ways and Means borrowing from the CBN. In seven years, CBN lending to the Buhari government had climbed 2700% in
— Peter Obi (@PeterObi) January 9, 2024
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