Former presidential candidate, Peter Obi, has strongly criticized Nigeria’s borrowing practices, describing debt taken for consumption as both “leprosy” and a “killer cancer” to the nation’s economy.
In a statement released on Thursday, Obi warned that borrowing without productive investment is gradually damaging Nigeria’s economic health, reputation, and independence. According to him, debt that does not translate into jobs, economic growth, or improved living standards only deepens the country’s challenges.
He stressed that responsible economies borrow with clear objectives and structured repayment plans tied to productive sectors. Obi argued that much of Nigeria’s current borrowing fails to meet these standards, alleging that many loans do not comply with the provisions of the Fiscal Responsibility Act 2007, which mandates a clear purpose and cost-benefit analysis for any borrowing.
The former Anambra State governor expressed concern over Nigeria’s rising debt servicing burden, noting that the country’s debt-to-revenue ratio is more critical than its debt-to-GDP ratio. He explained that high debt servicing limits the government’s ability to invest in key sectors necessary for human development and economic growth.
Obi further described the situation as “double jeopardy,” where borrowed funds fail to generate returns, yet must still be repaid using scarce national revenue.
He concluded by urging the government to adopt a more transparent and disciplined approach to borrowing, emphasizing that loans must be properly justified and beneficial to citizens.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and ensures it works for the people,” Obi stated.
He ended his remarks with a renewed call for national transformation, declaring that “a new Nigeria is possible.”
