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From Sola Ojo, Abuja
Former presidential candidate of the Labour Party, Peter Obi, has expressed concern over Nigeria’s rising debt profile, warning that borrowing without corresponding economic growth is worsening the country’s financial and social challenges.
In a post on his verified X handle yesterday, Obi cited recent reports by the World Bank indicating that Nigeria is now the institution’s third-largest debtor, with obligations estimated at about $18.7 billion. He noted that Bangladesh currently ranks first, with approximately $23 billion in debt to the global lender.
Obi stated that borrowing is not inherently problematic if funds are channelled into productive sectors that stimulate economic growth and improve citizens’ welfare.
“There is nothing inherently wrong with borrowing. Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency or corruption rather than investment,” he said.
Drawing comparisons between Nigeria and Bangladesh, he explained that around 2015, Bangladesh’s nominal Gross Domestic Product (GDP) stood at roughly $195 billion, with per capita income slightly above $1,235. By 2024/2025, he said, the South Asian nation’s economy had expanded to between $460 billion and $500 billion, while per capita income rose to about $2,700.
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He attributed Bangladesh’s growth to strategic investments in manufacturing, textiles, energy and human capital, suggesting that borrowed funds were largely channelled into productive ventures.
In contrast, Obi noted that Nigeria’s economy has declined over the same period. According to him, Nigeria’s GDP was about $490 billion in 2015, with per capita income around $2,600 to $2,700. He said the country’s GDP has now fallen to below $250 billion, while per capita income is estimated between $850 and $1,000.
He blamed the downturn on weak productivity growth, currency instability, structural inefficiencies and corruption.
“The contrast is instructive. One country borrowed and expanded production, exports and incomes; the other borrowed but saw declining economic strength and living standards,” he said.
The former Anambra governor maintained that the issue was not the volume of borrowing but how funds were utilised, stressing that debt tied to infrastructure, industry and human development could drive sustainable growth, while borrowing for consumption and leakages deepens economic stagnation.
He, however, expressed optimism that reforms in fiscal management and a more strategic approach to borrowing could reposition Nigeria for long-term economic stability and growth.
