Former presidential candidate Peter Obi has taken aim at Nigeria’s borrowing pattern, warning that piling up debt without clear economic returns could do lasting damage to the country.
In a post on his X account on Wednesday, Obi argued that borrowing itself isn’t the problem it’s what the money is used for. When loans are spent on consumption instead of productive investments, he said, they become dangerous, comparing the practice to a “killer cancer” eating away at the economy.
According to him, Nigeria’s challenge goes beyond the size of its debt. The real issue, he said, is that much of the borrowing does not translate into jobs, growth, or better living conditions for ordinary citizens.
He pointed out that in more disciplined economies, governments take on debt with clear plans tying loans to projects that can generate returns and support repayment. In Nigeria’s case, he suggested, that link is often missing.
Obi also referenced the Fiscal Responsibility Act of 2007, which requires that any borrowing be backed by a defined purpose and a clear cost-benefit analysis.
He argued that many recent loans fall short of both the legal requirements and basic economic logic.
Another concern, he said, is the growing burden of servicing those debts. As more government revenue goes into repayments, less is left for critical sectors like health, education, and infrastructure.
“What really matters,” Obi noted, “is not just how much we owe compared to the size of the economy, but how much of our income is being used to service that debt.”
He warned that borrowing for non-productive purposes creates a “double jeopardy” where the country is saddled with repayment obligations without gaining the economic capacity to meet them.
Obi called for a more transparent and accountable approach, urging the government of Bola Tinubu to ensure that every loan is clearly justified and delivers tangible benefits to Nigerians.
