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Former Labour Party presidential candidate, Peter Obi, has once again cautioned the Federal Government against what he described as Nigeria’s reckless borrowing culture, warning that the nation’s children risk inheriting “nothing but debt and despair” if urgent steps are not taken.
In a statement shared via his X handle on Tuesday, Obi said he had received “numerous messages about the nation’s growing debt” while away on a short leave over the weekend. He noted that even government officials had begun expressing concerns over the country’s rising debt profile, a development he has “consistently warned about.”
“Let me reiterate what I have consistently maintained, Nigeria cannot continue on this reckless path of borrowing without productivity. There’s nothing wrong with borrowing, what matters is ensuring that every loan translates into real, measurable productivity,” Obi said.
According to him, Nigeria’s tragedy lies in the fact that “the trillions we have borrowed cannot be traced to any meaningful impact in the critical sectors for which they were supposedly borrowed.”
“The more we borrow, the more poverty deepens, unemployment worsens, healthcare remains in shambles, our education system is deteriorating, and more people are being thrown into poverty,” he added.
Obi contrasted Nigeria’s situation with countries such as Indonesia, Vietnam, Egypt, and Bangladesh, which he said had borrowed heavily but invested wisely in productive sectors.
“In ours, the situation is the reverse; we take loans for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals are without basic equipment. There is an absence of a visible, measurable impact from our borrowings. Where are these borrowings going?” he asked.
The former governor of Anambra State further expressed concern that over 70 percent of government revenue is now spent servicing debts, leaving “almost nothing” for critical investments in education, health, job creation, and poverty alleviation.
“This is why I have always insisted that borrowing should be strictly tied to productive ventures that will generate measurable economic returns, not for consumption or waste,” he stressed.
Obi also criticised President Bola Tinubu’s fresh request for a $1.75 billion World Bank loan despite recently announcing that government revenues for the year had been met.
“Just days ago, Mr. President announced to the country that we have met our revenue for the year, yet he is on the news again today, attempting to borrow another $1.75 billion World Bank loan. This fiscal indiscipline must end,” Obi declared.
Calling for urgent reforms, Obi urged the government to prioritise channeling resources into productive sectors that create wealth and jobs, warning that the current trajectory was unsustainable.
“If we do not act with urgency, our children and youths will inherit nothing but debt and despair with no sustainable future. A New Nigeria is POssible,” he concluded.
