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By Goli Innocent
Former Anambra State governor and Labour Party presidential candidate, Peter Obi, has raised alarm over Nigeria’s rising debt, cautioning that borrowing without corresponding economic growth is deepening the country’s financial challenges.
Obi shared his concerns on Tuesday via his X (formerly Twitter) platform, responding to World Bank data showing Nigeria as the institution’s third-largest debtor, with obligations of about $18.7 billion. Bangladesh tops the list with approximately $23 billion.
“There’s nothing inherently wrong with borrowing,” Obi stated. “Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment.”
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He contrasted Nigeria’s economic trajectory with Bangladesh to highlight the impact of productive borrowing. “Bangladesh’s economy expanded from roughly $195 billion in 2015 to between $460 billion and $500 billion in 2024–2025,” Obi noted. “Its per capita income rose to about $2,700 because borrowed resources were largely channelled into productive sectors.”
On Nigeria’s economic performance, he said: “In 2015, Nigeria’s GDP was about $490 billion, with per capita income around $2,600–$2,700. Today, GDP has fallen to below $250 billion, with per capita income estimated between $850 and $1,000.” Obi attributed this decline to weak productivity growth, currency instability, structural inefficiencies, and corruption.
He emphasised that the problem lies not in borrowing itself, but in how loans are used: “Debt tied to infrastructure, industry, and human development fuels growth. Debt tied to consumption, leakages, and corruption deepens stagnation.”
Looking forward, Obi expressed cautious optimism: “A new Nigeria where loans, if taken, will translate into productivity instead of consumption is very much possible.”
