JUST IN: Peter Obi blasts Tinubu’s govt over loans, says Nigeria’s debts near N200trillion

Mr. Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), has criticised the Bola Tinubu administration over Nigeria’s rising debt profile, saying the country’s public debt has climbed to nearly N200 trillion without sufficient accountability on how borrowed funds are being utilised.

In a statement on Thursday, Obi said borrowing is not inherently bad but must be tied to clearly defined projects with measurable benefits for citizens.

His words: “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 said Nigeria could learn from South Africa’s handling of a recently secured $1 billion loan from the New Development Bank.

According to him, the South African government publicly outlined the purpose of the loan, including investments in water supply systems, sanitation infrastructure, electricity distribution and waste management services.

“There is a lot to learn in the open and transparent manner in which South Africa handled its recently secured a $1 billion loan from the New Development Bank, with a clearly defined purpose.

“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 stated.

The former Anambra governor said Nigeria’s debt burden has grown significantly under the current administration.

His words: “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.

“Today, our total public debt has increased from about ₦87 trillion in 2023 to nearly ₦200 trillion. 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 said every loan obtained in the name of Nigerians should be tied to productive investments capable of creating jobs, reducing poverty and improving living standards.

“Borrowing must never become an end in itself. 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.”

“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 said.

Obi added that rising living costs, unemployment, insecurity and declining purchasing power make fiscal discipline more important than ever.

“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 concluded.