Former presidential candidate, Peter Obi, has sharply criticised Nigeria’s borrowing pattern, warning that debt incurred without productive investment poses a grave threat to the nation’s economic future.
In a statement posted on his X (formerly Twitter) account on Thursday, Obi described borrowing for consumption as both “a leprosy” and “a killer cancer,” cautioning that such practices erode the country’s economic health and sovereignty.
“Mr. President, borrowing is not only a leprosy, but a killer cancer when it is borrowed for consumption and not production as it is in Nigeria today,” he stated.
The former Anambra State governor argued that Nigeria’s core challenge is not merely rising debt levels, but the absence of measurable economic value tied to such borrowings.
“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation. One of the major ‘leprosy’ afflicting Nigeria today is not just debt, but debt without productivity. Debt that is not tied to measurable economic value. Debt that does not translate into jobs, growth, or improved living standards for the Nigerian people,” Obi said.
He emphasised that responsible economies borrow with discipline and clear repayment strategies anchored on productive investments, noting that Nigeria’s approach falls short of both legal and economic standards.
Citing the Fiscal Responsibility Act 2007, Obi stressed: “Any government in the Federation or its agencies and corporations desirous of borrowing shall specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits.”
He added that such analysis must demonstrate how loans will drive economic growth and improve citizens’ welfare in measurable terms.
Obi, however, expressed concern that “most of the borrowings by this government do not satisfy the requirements of law or the requirements of economic common sense,” arguing that the scale of borrowing has not translated into enhanced productive capacity or improved living conditions.
He further warned about the implications of Nigeria’s rising debt servicing obligations, noting that the country faces one of the highest debt service ratios globally.
“What matters is not debt-GDP as much as debt-debt servicing ratio because the latter constrains our capacity to finance the sectors that drive human development and economic growth,” he said.
According to him, misapplied loans create a “double jeopardy,” where current revenues are used to service debts that neither boost revenue nor expand future production capacity.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people,” Obi added.
