Like South Africa, Nigerians Must See, Feel Benefits Of Every Debt— Peter Obi Tells Tinubu
The presidential candidate of the Nigeria Democratic Congress (NDC) for the 2027 general elections, Peter Obi, has urged President Bola Ahmed Tinubu to ensure that every debt incurred by the Federal Government translates into visible and measurable benefits for Nigerians.
Obi made the call while comparing Nigeria’s borrowing practices with that of South Africa, which recently secured a $1 billion loan from the New Development Bank for clearly defined infrastructure projects.
According to the former Labour Party presidential candidate, borrowing is not inherently problematic, provided the funds are deployed transparently and for projects that directly improve the lives of citizens.
“I have consistently maintained that borrowing, in itself, is not a bad thing. Every nation borrows. 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 of such borrowing in their daily lives,” Obi stated.
He commended South Africa for publicly outlining the objectives of the loan, noting that the funds were earmarked for upgrading water supply systems, modernising sanitation infrastructure, improving electricity distribution, and strengthening waste management services across major cities, including Johannesburg, Cape Town and Durban.
“There is a lot to learn in the open and transparent manner in which South Africa handled its recently secured $1 billion loan from the New Development Bank, with a clearly defined purpose,” he said.
Obi described the South African approach as a model of accountable governance, stressing that citizens can easily identify the projects being funded and assess their impact.
“This is indeed what accountable borrowing should look like; the purpose is clear, the projects are identifiable, and the expected benefits to citizens are measurable. Such investments directly improve living conditions, enhance productivity, and stimulate economic growth,” he added.
Turning to Nigeria’s debt profile, the former Anambra governor expressed concern over what he described as a sharp increase in public debt under the current administration. He claimed that Nigeria’s total public debt had risen from about N87 trillion in 2023 to nearly N200 trillion, while many citizens remain uncertain about how the borrowed funds are being utilised.
“In Nigeria, however, the opposite is the case: public debt has risen dramatically under the current administration, and its deployment is shrouded in secrecy from the people who will indeed pay back the loan,” he said.
The opposition figure argued that Nigerians deserve detailed explanations on how borrowed funds are being invested, particularly in key sectors such as education, healthcare, power, security and infrastructure.
“Yet, despite this unprecedented accumulation of debt, Nigerians are often left without a clear and detailed account of how these borrowings are being deployed to improve critical sectors such as education, healthcare, power, security, and infrastructure,” Obi stated.
He further maintained that borrowing should be tied strictly to productive investments capable of creating jobs, reducing poverty and stimulating economic growth.
“Every loan obtained in the name of the Nigerian people must be tied to specific, productive investments capable of generating economic value, creating jobs, reducing poverty, and improving the welfare of citizens,” he said.
Obi also called for greater transparency and accountability in public finance management, insisting that government must provide clear explanations on the amount borrowed, where the funds were invested and the outcomes achieved.
“Good governance demands transparency and accountability. The government must be able to clearly explain what was borrowed, where it was invested, and what measurable outcomes have been achieved. The ordinary Nigerian should be able to see and feel the benefits of every debt incurred on their behalf,” he noted.
Highlighting the economic challenges facing the country, Obi said rising living costs, unemployment, insecurity and declining purchasing power make prudent fiscal management more important than ever.
“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 no longer optional; they are imperative,” he said.
Obi concluded by warning against burdening future generations with debt that fails to deliver tangible benefits, insisting that every borrowing decision must ultimately improve the welfare of ordinary Nigerians.
“Every borrowing decision should answer one simple question: How does this improve the life of the ordinary Nigerian? If that question cannot be convincingly answered, then we risk merely transferring today’s burdens to future generations,” he said.