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Presidency, Peter Obi clash over FG borrowings

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The Presidency and one of the leading presidential aspirants on the platform of the opposition African Democratic Congress (ADC), Peter Obi, on Thursday traded words over borrowings by the Federal Government.

The exchange came after President Bola Ahmed Tinubu defended the administration’s borrowing profile, stating that “borrowing is not leprosy.”

Reacting on his X handle, Obi said, “Mr President, borrowing is not only leprosy, but a killer cancer when it is borrowed for consumption and not production as it is in Nigeria today.”

He said one of the major “leprosy” afflicting Nigeria today is not just debt, but debt without productivity.

The 2023 presidential candidate of the Labour Party (LP) argued that no serious economy borrows recklessly, stressing that nations borrow with discipline, purpose, and a clear plan for repayment through productive investment.

Part of the post titled “When Borrowing is Leprosy and Cancerous” read:

“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation.

“Debt that is not tied to measurable economic value. Debt that does not translate into jobs, growth, or improved living standards for the Nigerian people.

“The Fiscal Responsibility Act 2007 provides that ‘any government in the Federation or its agencies and corporations desirous of borrowing shall specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied’.

“Cost-benefit analysis must show how the loan would be applied, how it will impact economic growth, and improve the welfare of Nigerian citizens in measurable ways.

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“Most of the borrowings by this government do not satisfy the requirements of law or the requirements of economic common sense. The humongous borrowing so far does not show how the projects for the loans enhance the productive capacity of the nation and the welfare of Nigerian citizens.

“These loans are also dangerous because they burden the capacity of the Nigerian state to improve the economy in the future, as we have one of the world’s highest debt servicing ratios. What matters is not debt-to-GDP as much as debt-servicing ratio because the latter constrains our capacity to finance the sectors that drive human development and economic growth.

“If the money is wrongly spent as we do in Nigeria currently, it becomes double jeopardy because you are using current revenue to service debts that did not add to revenue or improve capacity for more production in the future.

“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people. A new Nigeria is possible.”

In a swift response on his X handle @aonanuga1956, the presidential spokesman, Bayo Onanuga, advised Obi to rise above what he described as a pedestrian level and address national issues with rational argument, not emotional reactions on social media.

Onanuga said the administration has been borrowing to finance much-needed infrastructure, not consumption.

“Mr Peter Obi, you have come again with your demagoguery. What point are you trying to make about borrowing? Every sovereign nation borrows, and as President Tinubu rightly said, borrowing is not leprosy. If you must know, this administration has been borrowing to finance much-needed infrastructure, not consumption.

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“The fact that we are receiving funds and have willing lenders shows that our country is credible and capable of repaying. As a politician, you need to rise above the pedestrian level and address issues of the day with rational argument, not emotional reactions on the streets and Twittersphere,” he tweeted.

tribuneonlineng.com

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No quarrel with Soludo, says Peter Obi on Anambra debt

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Former Anambra State Governor and Labour Party presidential candidate, Peter Obi, has said he has no disagreement with his successor, Chukwuma Soludo, declaring that he will not seek the governorship of any state again.

Obi made the clarification on Friday while responding to issues that had recently generated public discussion, including the controversy over the financial obligations associated with projects implemented during his tenure as Anambra governor.

The former governor, who said he had remained silent in recent days because he was mourning his late elder brother and friend, Chief Okey Ezeibe, said he was not interested in returning to the governorship, even if the Constitution was amended.

“I wish to assure the public that I have no disagreement with my dear elder brother, Governor Soludo, or with any governor in Nigeria. I am not seeking the office of governor in any state, and I will not seek that position again, even if the Constitution is amended”, he stated.

Obi also appealed to governors to allow presidential candidates and other contestants to campaign freely in their states, irrespective of their political affiliations. He said, “Accordingly, I appeal to governors to support whichever presidential candidate they choose while also permitting and assisting other presidential candidates and contenders for other offices to campaign freely and without interruption in their states. Ultimately, voters should be allowed to determine whom they wish to serve them.”

He added that political actors should focus on the challenges confronting Nigerians rather than engage in distractions.

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“On the Anambra debt question, I have remained silent over the past few days because I have been grieving the loss of my very dear elder brother and friend, Chief Okey Ezeibe. However, the time has come for me to address some of the matters that have occupied public discussion in recent days. I respectfully urge everyone to concentrate on the existential challenges confronting Nigeria and the hardships endured by its citizens, rather than on the needless distractions that have become widespread in our politics.”

His comments came amid a disagreement between the Anambra State Government and Obi over external borrowings associated with projects undertaken during his administration. https://punchng.com/anambra-govt-counters-obi-alleges-n127bn-124m-debt/

The state government had said eight external borrowings linked to projects during Obi’s tenure had a combined contracted value of $123.77m, with $92.35m outstanding as of June 30, 2026, based on figures from the Debt Management Office.

Obi rejected the characterisation of the facilities as “debt owed by Peter Obi”, saying they were primarily World Bank and International Fund for Agricultural Development development programmes negotiated by the Federal Government and accessed by participating states through subsidiary arrangements.

He said the figures being cited should be separated into the amount approved, the amount actually drawn and the balance outstanding when he left office. “The government has combined these distinct categories, added them together, and described the resulting US$123.77 million as ‘loans left by Peter Obi.’ That is an incorrect application of public-sector accounting”, he argued.

Obi further maintained that he did not personally approach any financial institution to borrow funds or issue a bond on behalf of the state. He said, “Regarding the multilateral funding inaccurately described as ‘debt owed by Peter Obi’ in Anambra State, I wish to state unequivocally, as Governor of Anambra State, I did not approach any financial institution to borrow funds or issue a bond on behalf of the state.

See also  Soludo orders suspension of absentee workers after surprise secretariat visit

“Indeed, at his farewell ceremony, the then Director-General of the DMO, Abraham Nwankwo, appointed me chairman and declared that, during his 10 years in office, I was the only state governor who had not approached him for a loan facility.”

He also said his administration left no unpaid salaries, gratuities or pensions, and no verified debts owed to contractors or suppliers. “When I left office, the Anambra State Government owed no unpaid salaries, gratuities, or pensions. Neither did it owe any contractor or supplier who had completed work that the government had verified and certified.”

Obi said the issues surrounding the development financing should be considered in the context of how the facilities were approved, accessed and repaid.

“The eight facilities identified were primarily World Bank and IFAD development programs negotiated by the Federal Government, with participating states receiving access to the funds through subsidiary arrangements. They were not conventional commercial loans that I personally secured during my tenure. This does not suggest that Anambra had no repayment responsibilities; rather, each facility must be examined in light of its approval, effectiveness, drawdown, and repayment record”, he explained.

He also cited Debt Management Office figures for Anambra’s external debt at different points, questioning how the $123.77m figure attributed to his administration was arrived at.

“The clearest contradiction appears in the government’s own figures. It states that the original facilities amounted to approximately US$123.77 million and that US$92.35 million remained outstanding in June 2026. However, the DMO’s published records showed Anambra’s total external debt at approximately US$18 million when I began my tenure in March 2006, about US$30 million in March 2014, when I left office, and approximately US$45.15 million as of 31 December 2014, nine months after my departure.

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“The Anambra State Government must therefore clarify how a state whose recorded external debt was about US$30 million in March 2014 and US$45.15 million in December 2014 could supposedly have inherited US$123.77 million from Peter Obi, who left office in March of that same year”, he concluded.

Source: punchng.com

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Moghalu rejects Atiku campaign appointment ahead of 2027 elections

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A former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has rejected his inclusion in the policy team of the African Democratic Congress presidential candidate, Atiku Abubakar, for the 2027 election.

Moghalu, in a statement posted on his X handle on Thursday, said he was neither consulted nor asked for his consent before his name was published as a member of Atiku’s campaign policy team.

His reaction came hours after Atiku’s campaign unveiled its Presidential Campaign Council, naming Moghalu among members of its Policy Team.

The team is chaired by economist and banker Mohammed Hayatudeen, with Professor Mohammed Sagagi as deputy chairman.

Atiku Abubakar
FILE: Atiku Abubakar

“I am surprised to see a statement from @atiku and @ADCNig campaign team including my name as a member of former Vice-President Atiku Abubakar’s policy team for the 2027 presidential campaign.

“For the record: I was not consulted and did not give my consent to my name being published as a member of the ADC candidate’s policy team.

“I am NOT, in fact a member of Atiku’s policy team, even unofficially or in any advisory capacity,” Moghalu said.

Moghalu, who was a presidential candidate of the Young Progressives Party in the 2019 election, said he had quit partisan politics in Nigeria in 2022.

“I have quit partisan politics in Nigeria since 2022. I have maintained, and continue to maintain, my non-partisan posture in our country’s national affairs.

“I am not a member or sympathiser of any political party in Nigeria,” he said.

He said his current engagements included serving as president of the Institute for Governance and Economic Transformation, IGET Africa, which he described as a non-partisan public policy think tank and executive education academy, as well as Chief Executive Officer of Sogato Strategies, a geopolitical risk and regulatory strategy advisory firm.

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Moghalu said his decision to remain outside partisan politics did not mean he was disengaged from national affairs.

“I remain committed to my country, Nigeria and its progress, but such commitment does not have to entail ANY partisan alignment.

“I have adopted the path of statesmanship, not partisanship,” he said.

The clarification follows the unveiling of Atiku’s campaign structure on Thursday, with Kashim Ibrahim-Imam named chairman, former Kaduna State Governor Nasir El-Rufai as deputy chairman and Senator Austin Akobundu as Director-General and Campaign Manager.

The campaign said its Policy Team would develop policy proposals addressing issues including the cost of living, unemployment, insecurity and declining purchasing power.

Source: punchng.com

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Benue PDP faults Alia over LG workers’ attendance register

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The Peoples Democratic Party in Benue State has condemned the directive issued by Governor Hyacinth Alia, ordering the 23 local government areas to maintain attendance registers for their workers.

The Benue State Local Government Service Commission, in a letter dated September 24, 2026, and signed by the Permanent Secretary, John Akume, on behalf of the chairman of the commission, had directed all LGAs to maintain daily staff attendance registers across departments.

The circular read, “I am directed to inform you that owing to the directives from His Excellency, the Executive Governor of Benue State, Rev. Dr Hyacinth Alia, all establishments in the state civil service are to keep and maintain attendance registers.

“To this end, all local government councils are directed to comply with the above directive by opening attendance registers for staff across Departments.

“These registers are to be opened and closed by Heads of Departments daily at 8:30 am, as only staff who attain the minimum punctuality of 25 days would be eligible for payment of salaries.”

The permanent secretary advised that all the local government councils must adhere strictly to the directive beginning from  October 1, 2026.

Reacting, the opposition PDP described the directive as “draconian and anti-worker.”

In a statement issued by the party’s state publicity secretary, Bright Antyo and made available to journalists in Makurdi on Thursday, the PDP said the directive negated the judgment of the Supreme Court, which affirmed the financial and administrative autonomy of local governments in Nigeria.

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The PDP statement read, “This directive is not only draconian and anti-worker, but also a direct affront to the spirit and letter of the landmark Supreme Court judgment of July 2024, which affirmed the financial and administrative autonomy of local governments in Nigeria.

“Autonomy means independence. Autonomy means local governments should be free to take decisions concerning their administration, personnel management and internal operations without interference from the state government.

“A governor who genuinely believes in local government autonomy cannot simultaneously act as a supervisor, inspector, disciplinarian and paymaster of local government employees.”

The major opposition party in the state stated that the directive had exposed the contradiction between the governor’s public rhetoric and the reality on the ground.

“While the administration continues to celebrate supposed local government autonomy in public speeches, its actions reveal a desperate determination to retain control over affairs of the 23 councils through intimidation and despotic directives.

“Even more disturbing is the threat that workers who fail to meet a prescribed attendance requirement would be denied salaries.

“The authority to determine staff attendance, discipline workers and administer payroll belongs to the appropriate local government authorities, not the Governor’s Office or agencies acting on its behalf.

“Attempting to centralise such powers undermines the constitutional status of Local Governments and reduces elected council officials to mere spectators in the administration of their councils.”

The opposition PDP asked if the governor had been receiving directives from the Federal Government on how to administer the state.

The PDP said that with the directive, the third tier of government had been reduced to an appendage of the governor.

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“They neither possess the practical freedom nor the financial capacity to award contracts independently.

“The governor runs the councils as extensions of his office, while any local government chairman who dares to complain or assert independence is swiftly suspended and eventually forced out of office,” the statement concluded.

Source: punchng.com

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