Why Federal Borrowing Must Strictly Be For Production – Obi
Mr. Peter Obi

The presidential candidate of the Labour Party, Peter Obi, has explained his consumption to production theory, which is the punchline for his presidential campaign.

In a statement made available to Africa Today New York on Wednesday, Obi asserted that the federal borrowing for consumption must stop and be channeled into regenerative projects adding that if elected, his administration would reduce the cost of governance in the country.

He further added that the country must look beyond oil and look forward to growth-enabling entrepreneurship by expanding physical infrastructure through market-driven reforms.

Obi said, ‘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.

Read Also: What Obi And I Will Achieve In Four years – Datti Ahmed

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.’

The statement went further to explain the consumption-to-production theory stating that ‘the concept entails that the country ensures sustainability and resilience, and stop borrowing for consumption and channel all loans to be invested in regenerative projects.

“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 a legal framework would be enforced to protect foreign investors and their indigenous partners.

Africa Today News, New York

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