The Petroleum Products Retail Outlets Owners Association of Nigeria recently expressed disapproval of the Federal Government’s decision to seek a $500 million loan from the World Bank to support basic education. The loan, which is set to receive formal approval by March 2025, has raised concerns about Nigeria’s increasing debt levels.
In a statement titled “Where Are the Savings from Subsidy Removal?”, PETROAN highlighted worries about the government’s continuous borrowing habits. The association emphasized the need for the government to reduce dependency on loans and focus on utilizing resources efficiently, especially after promises to cut down on fuel subsidy expenses to redirect funds towards critical sectors like education, healthcare, and job creation.
PETROAN’s National Publicity Secretary, Dr. Joseph Obele, pointed out the negative impact of borrowing for non-productive purposes and cautioned against using loans for recurrent expenses like salaries and debt servicing. The association stressed the importance of directing borrowed funds towards initiatives that promote economic growth, job creation, and food security, rather than perpetuating a cycle of debt repayment that could hinder progress and lead to financial instability in the future.