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From Sola Ojo, Abuja
Former presidential candidate of the Labour Party Mr Peter Obi has again raised concerns over Nigeria’s rising debt profile, describing the trend as reckless and unsustainable.
Obi, on his verified ‘X’ handle on Tuesday, said he received several messages during his short leave over the weekend, with many Nigerians expressing worry about the nation’s mounting debt.
He stressed that he has consistently warned against uncontrolled borrowing without corresponding productivity.
“There’s nothing wrong with borrowing. What matters is ensuring that every loan translates into real, measurable productivity.
“Borrowing, if not directed towards critical areas of development, such as health, education, and poverty alleviation, will only worsen the economy,” Obi argued.
He lamented that trillions of naira already borrowed by the government could not be traced to meaningful impact in key sectors.
According to him, instead of improving living standards, the country has continued to experience deepening poverty, worsening unemployment, decaying healthcare, and a deteriorating education system.
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Comparing Nigeria with peer nations, Obi noted that countries such as Indonesia, Vietnam, Egypt, and Bangladesh have also relied on loans but have made visible improvements in infrastructure, power, and social services.
“In our case, we borrow for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals lack basic equipment,” he stated.
The former governor of Anambra State also decried the high cost of debt servicing, noting that over 70 percent of government revenue is now spent on servicing loans, leaving little for critical investments in health, education, job creation, and poverty reduction.
Obi faulted the Federal Government’s recent move to seek an additional $1.75 billion loan from the World Bank, despite claims by President Bola Tinubu that Nigeria had already met its revenue target for the year.
He described the step as “fiscal indiscipline” that could mortgage the future of Nigerian youths.
He reiterated his call for responsible borrowing, insisting that loans should only be tied to productive ventures capable of generating economic returns.
“If we do not act with urgency, our children and youths will inherit nothing but debt and despair, with no sustainable future,” Obi warned.
