Peter Obi Questions Nigeria’s Rising Debt Burden
Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has raised concerns over Nigeria’s growing debt profile and urged the Federal Government to adopt more transparent borrowing practices.
Obi cited South Africa’s recent $1 billion loan approval by the New Development Bank as an example of accountable borrowing, saying authorities clearly explained the purpose of the facility from the outset.
Obi Points to South Africa’s Loan Model
According to Obi, South African officials disclosed that the loan would fund water supply upgrades, sanitation infrastructure, electricity distribution improvements, and waste management projects across major cities.
Consequently, citizens can track the projects, monitor implementation, and assess the results of the spending.
The former Anambra State governor said borrowing is not inherently wrong. However, he stressed that governments must back every loan with transparency, accountability, and measurable outcomes.
“There is much to learn from the open and transparent manner in which South Africa secured and explained the purpose of its loan facility. Citizens know what the money is meant for and can monitor the projects,” Obi said.
Concerns Over Nigeria’s Debt Growth
However, Obi contrasted South Africa’s approach with Nigeria’s current debt situation.
He expressed concern that Nigeria’s public debt has increased sharply in recent years without enough clarity on the projects financed through the borrowings.
Furthermore, Obi noted that Nigeria’s public debt stock reportedly rose from about ₦87 trillion in 2023 to nearly ₦200 trillion.
Consequently, he said the rapid increase raises questions about transparency, accountability, and long-term fiscal sustainability.
Despite the surge in borrowing, Obi argued that many Nigerians cannot point to projects or social investments that match the scale of the accumulated debt.
Calls for Accountability in Borrowing
Meanwhile, Obi maintained that every loan obtained in the name of Nigerians should support productive investments.
According to him, borrowed funds should create jobs, stimulate economic growth, reduce poverty, and improve public welfare.
Furthermore, he said governments have a responsibility to disclose how much they borrow, how they spend the funds, and the results achieved from such spending.
In response, Obi stressed that accountability in public finance has become even more important amid rising living costs, unemployment, insecurity, and declining purchasing power.
Demand for Fiscal Discipline
However, Obi warned that unchecked borrowing without visible impact could place a heavy burden on future generations.
He argued that such borrowing may fail to address the country’s immediate economic challenges while increasing long-term debt obligations.
Consequently, he called for stronger fiscal discipline and greater transparency in public debt management.
Obi insisted that Nigerians should judge borrowing decisions by their impact on citizens’ lives and national development.
His remarks come amid growing public debate over Nigeria’s rising debt profile and increasing calls for stronger oversight of government borrowing and spending.
