Former presidential candidate Peter Obi has criticized Nigeria’s borrowing habits, warning that debt accumulation without constructive investment could jeopardize the country’s economic future.
In a message posted on his X account on Wednesday, Obi described borrowing for consumption rather than creation as harmful, comparing it to a “killer cancer” that erodes a country’s economic health.
“Borrowing is not only a leprosy but also a killer cancer when it is borrowed for consumption and not production as it is in Nigeria today,” he said.
Obi contended that one of Nigeria’s biggest concerns is not only mounting debt but also borrowing that is unrelated to demonstrable economic output, job creation, or higher living standards.
“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,” he added.
He emphasized that responsible economies borrow with discipline and clear repayment plans related to economic investments, pointing out that Nigeria’s approach falls short of these expectations.
Obi cited the Fiscal Responsibility Act of 2007, which states that any loan must define its purpose and offer a cost-benefit analysis demonstrating economic and social benefits.
According to him, many of the government’s loans do not match these legal and economic standards.
“Most of the borrowings by this government do not satisfy the requirements of law or the requirements of economic common sense,” he said.
Obi also raised concern about Nigeria’s high debt servicing burden, stating that it limits the government’s capacity to invest in critical industries that fuel development.
“What matters is not debt-GDP as much as debt-debt servicing ratio because the latter constrains our capacity to finance the sectors that drive human development and economic growth,” he stated.
Obi warned that borrowing for non-productive purposes creates a “double jeopardy,” where current revenues are used to service debts that do not enhance future economic capacity.
He urged the government to adopt a more transparent and accountable approach to borrowing, insisting that loans be justified and made to benefit citizens.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people,” he said.
