The 2027 presidential flag bearer of the Nigeria Democratic Congress (ADC), Mr. Peter Obi, has raised concern over Nigeria’s rising debt profile, noting that the country’s growing borrowings have not translated into visible impact or improvements in the lives of ordinary Nigerians.
Obi further clarified that while borrowing was not inherently wrong, the government must be transparent about the purpose of every loan and demonstrate measurable outcomes from the resources obtained in the name of the people.
The NDC chieftain disclosed this in an ‘X’ statement yesterday while comparing Nigeria’s debt management approach with that of South Africa.
This comes after South Africa recently secured a $1 billion loan from the New Development Bank with clearly stated objectives.
According to him, South Africa stated that it would use the facility to improve electricity distribution, modernise sanitation infrastructure, upgrade water supply systems, and strengthen waste management services across eight major cities, including Johannesburg, Cape Town, and Durban.
According to Peter Obi, the South African model is an illustration of responsible borrowing since it has a clear goal, recognisable projects, and the ability for individuals to track the anticipated returns.
₦87 trillion in 2023 to nearly ₦200 trillion.
He also criticized the current administration for allowing Nigeria’s public debt to balloon from roughly ₦87 trillion in 2023 to nearly ₦200 trillion. Compounding this fiscal strain, he protested that the government has consistently kept citizens in the dark, failing to provide transparent accounts of how these massive loans have been utilized to revitalize critical sectors such as infrastructure, education, healthcare, electricity, and national security.
Obi “Borrowing must never become an end in itself. Every loan obtained in the name of the Nigerian people must be tied to a specific, productive investment, capable of generating economic value, creating jobs, reducing poverty and improving the welfare of citizens.”
He emphasised that at an era when millions of Nigerians were battling growing living costs, unemployment, insecurity and falling purchasing power, budgetary discipline and smart use of public resources had become a must.
