Tinubu borrowed more money than previous Govts says Obi

DDM NEWS

Peter Obi

Former Governor of Anambra State, Mr Peter Obi says Present Bola Armed Tinubu led government has borrowed more money in two years than previous administrations combined.

He stated this while addressing newsmen in Abuja during the Democracy Day celebration.

Obi says the government celebrates failure and mediocrity instead of excellence.

He noted that poverty and other economic indicators are on the high side now than before.

Adding that the government has pride itself in telling lies and deceit instead giving good governance to the people.

A critical analysis of the report is stated below:

“Former Vice President Atiku Abubakar and Labour Party’s presidential candidate, Mr Peter Obi have raised concerns over President Bola Tinubu’s borrowing spree, with Obi stating that the current administration has borrowed more money in two years than the preceding presidents borrowed in 16 years.

Let’s examine the claims and the implications.

According to the Debt Management Office, Nigeria’s total public debt has indeed increased significantly under President Tinubu’s administration.

While exact figures for the previous administrations (Yar’Adua, Jonathan, and Buhari) combined are not readily available, we can look at the broader trend.

The Minister of Finance, Wale Edun, recently presented a budget and economic plan to the Senate, highlighting the need for more borrowings to fund the nation’s budget deficit.

The Senate approved a ₦1.77 trillion ($2.2 billion) loan request from President Tinubu, part of a fresh external borrowing plan to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.

Despite the increased borrowing, some revenue-generating agencies have surpassed their targets.

The Nigerian National Petroleum Company Limited (NNPCL) exceeded its N12.3 trillion revenue projection, raking in N13.1 trillion.

The Federal Inland Revenue Service (FIRS) has also surpassed targeted revenues across various tax components.

The Customs Service collected N5.352 trillion, above its N5.09 trillion target for the 2024 fiscal year.

The implications of President Tinubu’s borrowing spree are multifaceted:

Debt Sustainability: The rapid increase in debt raises concerns about Nigeria’s ability to service its debt obligations.

Economic Growth: If the borrowed funds are invested productively, they could stimulate economic growth and development.

Transparency and Accountability: Critics argue that the borrowings lack transparency, and there’s inadequate accountability on how the funds are utilized.

Critics like Peter Obi and Atiku Abubakar argue that the borrowings are unsustainable and lack transparency.

Reno Omokri, however, counters that the debt profile has actually reduced when viewed in dollar terms, attributing the apparent increase to naira devaluation .

President Tinubu’s borrowing spree has sparked intense debate, with valid concerns about debt sustainability, transparency, and accountability.

While some revenue-generating agencies have performed well, the jury is still out on whether these borrowings will yield meaningful development outcomes for Nigeria.

As the nation navigates its economic challenges, prudent management of borrowed funds will be crucial to achieving sustainable growth and development.

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