FG must stop borrowing for consumption, Obi cautions

The presidential candidate of the Labour Party, Peter Obi, has said the Federal Government must stop borrowing for consumption.

Taking to Twitter on Thursday, the former governor of Anambra State lamented that states that received bailouts failed to repay the loans.

He, however, advised that federal borrowings should be restricted to the statutory five per cent of the previous year’s revenue.

He wrote, “As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures.

“It’s ironic that states that received fiscal bailouts did not repay the loans and are still borrowing beyond their revenue earnings.

“Also, it has become imperative to restrict federal borrowings to the statutory five per cent of the previous year’s revenue.”

A few days ago, the presidential candidate blamed the instability of the naira on “distortions in the economy and fiscal policies,” adding that “the plummeting exchange rate is worrisome.”

“The Fiscal Managers should come up with a policy line or modality for arresting the value drift and restoring confidence in the National currency. Also, denominating domestic transactions and contracts in foreign currency should be stopped forthwith,” he added.

Also on Thursday, said when made productive, Nigerian youths will change the country and restore its squandered glory.

Obi said that he and his running mate, Senator Yusuf Baba-Ahmad, are in the presidential race for the youth of Nigeria who have been ignored and neglected over time to the detriment of the society.

Obi told thousands of jubilant youth support groups at a summit at International Conference Centre, Abuja on Thursday that every part of Nigeria including Sambisa forest is virgin agricultural land waiting to be harnessed.

-The Punch