FG should borrow strictly for production - Peter Obi insists

The Labour Party presidential candidate, Peter Obi, has reiterated his stance against borrowing for consumption by the federal government.

Obi calls for loan for production: The former Anambra State Governor insisted that any loan taking by the government should be channeled into production.

Obi disclosed this while explaining his consumption to production theory in a statement issued on Wednesday, November 30, 2022.

No more borrowing for consumption: The Labour Party presidential candidate insisted that federal borrowing for consumption isn't sustainable as such loans should be devoted to regenerative projects, adding that if elected, his administration would reduce cost of governance in the country.

Explaining further, Obi said it has become more imperative for the country to look beyond oil for revenue and pursue growth-enabling entrepreneurship through expansion of physical infrastructure driven by market reforms.

Obi's word: “We therefore intend to leapfrog Nigeria from oil to the Fourth Industrial Revolution by expanding physical infrastructure through market-driven reforms that will unleash growth-enabling entrepreneurship and market-creating innovations.

“We shall pursue a drastic reduction in cost of governance and corruption, improve ease of doing business to attract Foreign Direct Investment to jumpstart industrialisation and when borrowing is unavoidable, it will be strictly for production.

“Whatever oil we still have will be refined domestically. These measures along with ending the leakages, including the subsidy regime and improving our tax regime should do the magic of moving Nigeria from consumption to production.

“It is also imperative that henceforth, we should strive to operate within available resources and strive for a balanced national budget as cost saving measures.”

Why consumption to production: On his consumption to production theory, Obi said the major tenets of the concept is to ensure sustainability and resilience, and stop borrowing for consumption.

Obi's word: “The thrust of the Obi-Datti presidency if hired by Nigerians will be on agriculture and production-centered growth for food security and export, with more emphasis on exporting finished products instead of commodities and raw materials,” the statement explained.

The LP candidate further said that legal framework would be enforced to protect foreign investors and their indigenous partners.

“We will enforce the legal framework protecting foreign investors and their indigenous partners. This is the only way to temper monopoly and capital flight.”

He continued, “Nigeria has over 84 million hectares of arable land with only 40% of it cultivated, pointing out that Nigeria’s arable land is her new oil and gold.

“In pursuit to Goal 9 of the SDGs, Obi explained that if elected the administration will from its inception, continue to encourage investment in infrastructure – energy, transport, irrigation, and telecoms—to grow these and other sectors.”