Former governor of Anambra State, Mr. Peter Obi, has said that Nigeria’s growing debt is not the problem, but how the country uses borrowed funds.
Obi in a post on his official X handle on Tuesday, said recent World Bank data reveal Nigeria is now the world’s third-largest debtor, with obligations of around $18.7 bn, behind Bangladesh at $23 bn.
“Borrowing is not inherently wrong. “Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment, as is the case in Nigeria,” he said.
He compared Nigeria’s trajectory with Bangladesh’s, saying that around 2015, Bangladesh had a GDP of roughly $195 billion and a per-capita income of about $1,235.
By 2024–2025, the economy had grown to $460–500 billion, and per-capita income rose to $2,700, driven by investments in manufacturing, textiles, energy, and human capital.
“Nigeria, on the other hand, has seen its GDP fall from $490 billion in 2015 to below $250 billion today, with per-capita income dropping to $850–1,000. Factors include weak productivity growth, currency instability, structural inefficiencies, and corruption.
“The contrast is clear. “One country borrowed and expanded production, exports, and incomes. The other borrowed but saw declining economic strength and living standards. Debt tied to infrastructure, industry, and human development fuels growth. Debt tied to consumption, leakages, and corruption deepens stagnation,” he said.
“A new Nigeria, where loans, if taken, translate into productivity instead of consumption, is very much possible”, he added.
