Peter Obi, presidential candidate of the Nigeria Democratic Party (NDC), has criticised the borrowing policy of President Bola Tinubu’s administration, saying Nigerians are not given enough information about how borrowed funds are spent.
Obi spoke in a post on X on Thursday.
The former Anambra governor said borrowing is not inherently bad. However, he argued that governments must clearly explain how loans are used and what benefits they deliver to citizens.
“I have consistently maintained that borrowing, in itself, is not a bad thing. Every nation borrows,” he said.
“The critical issue is not the act of borrowing, but what the borrowed funds are used for and whether citizens can clearly see and measure the impact.”
Obi cited South Africa’s recent $1 billion loan from the New Development Bank as an example of transparent borrowing.
According to him, South African authorities publicly outlined the purpose of the loan and the projects it would fund.
The projects include upgrades to water supply systems, sanitation infrastructure, electricity distribution and waste management services.
“Such investments directly improve living conditions, enhance productivity, and stimulate economic growth,” he said.
LACK OF TRANSPARENCY IN NIGERIA’S BORROWING SPENDING
However, Obi said Nigeria’s borrowing pattern lacks the same level of transparency.
He alleged that public debt has increased significantly under the current administration without sufficient disclosure on how the funds are being deployed.
“In Nigeria, however, the opposite is the case. Public debt has risen dramatically under the current administration, and its deployment is shrouded in secrecy,” he said.
The former governor said Nigeria’s public debt has risen from about N87 trillion in 2023 to nearly N200 trillion.
Furthermore, he argued that citizens deserve a detailed account of how borrowed funds are invested in key sectors.
These sectors include education, healthcare, power, security and infrastructure.
“Borrowing must never become an end in itself,” Obi said.
“Every loan obtained in the name of the Nigerian people must be tied to specific, productive investments.”
He added that governments should ensure borrowed funds create jobs, reduce poverty and improve citizens’ welfare.
According to Obi, transparency and accountability remain essential elements of good governance.
“The government must be able to clearly explain what was borrowed, where it was invested, and what measurable outcomes have been achieved,” he said.
“The ordinary Nigerian should be able to see and feel the benefits of every debt incurred on their behalf.”
Obi also warned against accumulating debt without delivering measurable results.
“At a time when millions of Nigerians are struggling with rising costs of living, unemployment, insecurity and declining purchasing power, fiscal discipline and prudent management of public resources are imperative,” he said.
“Every borrowing decision should answer one simple question: How does this improve the life of the ordinary Nigerian?”
