From Sola Ojo, Abuja
Former presidential candidate of the Labour Party, Peter Obi, on Thursday critisised Nigeria’s borrowing pattern, describing debt accumulated for consumption rather than production as “leprosy” and “a killer cancer” threatening the country’s economic future.
Obi on his verified ‘X’ handle warned that Nigeria’s growing debt profile was becoming dangerous because it is not tied to measurable economic value or productivity.
“Borrowing is not only a leprosy, but a killer cancer when it is borrowed for consumption and not production,” he said.
He argued that debt without clear economic returns weakens a nation’s financial health, damages its reputation, and erodes its autonomy, stressing that Nigeria’s current borrowing approach fails to generate jobs, growth, or improved living standards.
According to him, “one of the major afflictions facing Nigeria today is not just debt, but debt without productivity debt that does not translate into jobs, growth, or improved welfare for citizens.”
Obi contrasted Nigeria’s approach with global best practices, noting that serious economies borrow with discipline and clear repayment plans tied to productive investments.
“No serious economy borrows recklessly. Nations borrow with purpose and a clear plan for repayment,” he said.
Citing the Fiscal Responsibility Act 2007, Obi emphasised that Nigerian law required governments to specify the purpose of borrowing and provide a cost-benefit analysis showing economic and social returns.
“Any government desirous of borrowing must detail how the loan will impact economic growth and improve the welfare of citizens in measurable ways,” he said, arguing that many current loans fall short of both legal and economic standards.
He further raised concerns over Nigeria’s high debt servicing obligations, warning that the country’s ability to invest in critical sectors is being severely constrained.
“What matters is not just the debt-to-GDP ratio, but the debt servicing ratio, because it limits our capacity to finance development,” he stated.
Obi cautioned that borrowing for non-productive purposes creates a “double jeopardy” for the economy, as government revenues are used to service debts that neither generate income nor expand productive capacity.
“If the money is wrongly spent, you are using current revenue to service debts that did not improve future production,” he added.
He, therefore, called for greater accountability and transparency in public borrowing, insisting that governments must justify loans and ensure they deliver tangible benefits to citizens.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and ensures it works for the people,” Obi stressed.
