Peter Obi Nigeria Debt Strategy Criticism: Ex-Governor Says Borrowing Lacks Productivity
Former presidential candidate Peter Obi has criticised the Federal Government’s debt strategy, accusing authorities of borrowing heavily without translating the funds into tangible productivity or measurable economic progress.
In a statement released on his social media platforms, Obi argued that while borrowing is not inherently wrong, it becomes problematic when loans are not invested in productive sectors that stimulate growth, create jobs, and improve living standards. He stressed that debt accumulation must be tied to clear economic outcomes capable of repaying the loans.
Obi maintained that Nigeria’s rising debt profile has not corresponded with significant improvements in infrastructure, industrial output, or poverty reduction. According to him, borrowing should be channelled into sectors such as manufacturing, agriculture, education, and healthcare to drive sustainable development.
The former Anambra State governor further warned that increasing debt servicing costs could crowd out funding for critical public services, placing additional strain on citizens already grappling with inflation and economic hardship.
He called on the Federal Government to adopt a more transparent and productivity-focused borrowing framework, ensuring that every loan secured contributes directly to expanding the nation’s economic base.
The Federal Government has consistently defended its borrowing practices, stating that funds are used to finance infrastructure projects and stabilise the economy during fiscal challenges. Officials have also argued that Nigeria’s debt-to-GDP ratio remains within manageable limits compared to global benchmarks.
Obi’s remarks have since sparked fresh debate among economists, policy analysts, and political stakeholders over Nigeria’s fiscal direction and long-term debt sustainability.
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