Peter Obi, presidential candidate of the Labour Party (LP), has stated that the federal government should restrict borrowings to a statutory 5 percent of the previous year’s revenue.
Obi disclosed this on Thursday on his verified Twitter page, warning that Nigeria must limit borrowing for consumption.
The presidential candidate also warned that most states that received fiscal bailouts did not invest them properly.
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“As a matter of urgency, Nigeria must stop borrowing for consumption, but only borrow to invest in regenerative development projects and other productive ventures,” he said.
“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 5 percent of the previous year’s revenue.”
