Former presidential candidate, Peter Obi, has delivered a damning critique of Nigeria’s borrowing pattern, describing debt incurred for non-productive purposes as both “leprosy” and a “killer cancer” undermining the nation’s economic future.
In a statement on Thursday, Obi argued that borrowing in itself is not the problem, but rather how such funds are utilised.
He warned that loans taken for consumption, rather than investments that generate growth, gradually erode a nation’s economic health, weaken its global standing, and compromise its independence.
According to him, Nigeria’s current debt profile reflects a troubling pattern of borrowing without corresponding productivity, noting that many loans fail to translate into tangible economic value such as job creation, infrastructure development, or improved living standards.
“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation,” he said, stressing that responsible economies only take on debt with clear objectives, measurable outcomes, and structured repayment plans anchored on productive investments.
Obi cited provisions of the Fiscal Responsibility Act 2007, which require governments to clearly define the purpose of borrowing and present a cost-benefit analysis demonstrating the economic and social gains.
He maintained that many recent borrowings fall short of these statutory and economic benchmarks.
He further warned that Nigeria’s rising debt servicing burden—among the highest globally—poses a more serious threat than the debt-to-GDP ratio often highlighted by policymakers.
According to him, the growing share of revenue used to service debt is constraining government’s ability to invest in critical sectors such as education, healthcare, and infrastructure.
The former Anambra State governor described the situation as “double jeopardy,” where current revenues are deployed to service debts that neither expand the economy nor enhance future revenue-generating capacity.
Obi insisted that a responsible government must go beyond defending its borrowing decisions, urging authorities to provide clear justification, ensure transparency, and guarantee that such loans deliver measurable benefits to citizens.
He reiterated his reformist stance, declaring that a “new Nigeria is possible” if fiscal discipline, accountability, and productive investment become the cornerstone of public finance management.
