Mr Peter Obi, Labour Party presidential candidate has cautioned the president Muhammad Buhari’s regime against borrowing for consumption.
Obi explained that Nigeria urgently needs to borrow for regenerative development projects and other productive ventures instead of borrowing for consumption.
He also advised the government to limit its borrowing to the 5% of the previous year’s revenue.
In a statement on Wednesday, the former Anambra State Governor said “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 ironical that States that received fiscal bailouts did not invest them properly; 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 5% of the previous year’s revenue”
