Peter Obi Replies Tinubu: “Nigeria’s Current Borrowing For Consumption Is Both Leprosy, Cancer”
Peter Obi Replies Tinubu: “Nigeria’s Current Borrowing For Consumption Is Both Leprosy, Cancer”
SaharaReporters had on Wednesday reported that President Bola Tinubu openly defended his administration’s borrowing spree, declaring that taking loans is nothing to be ashamed of despite Nigeria’s ballooning debt burden and worsening economic hardship.
Former Labour Party Presidential candidate, Peter Obi, has criticised Nigeria’s growing debt profile, warning that borrowing without productive investment is crippling the country’s economic future and worsening its fiscal health.
In a statement shared on his X handle on Thursday, Obi described Nigeria’s current borrowing pattern as both “leprosy” and “a killer cancer,” particularly when loans are used for consumption rather than productive purposes.
SaharaReporters had on Wednesday reported that President Bola Tinubu openly defended his administration’s borrowing spree, declaring that taking loans is nothing to be ashamed of despite Nigeria’s ballooning debt burden and worsening economic hardship.
In a video currently circulating online, Tinubu had said, “If we have to borrow money, we will borrow. Borrowing money is not Leprosy. We just have to work hard to give to people.”
Meanwhile, according to Obi, a former Anambra State governor, debt that is not tied to measurable economic value, job creation, or improved living standards poses a serious threat to the nation’s stability.
He said, “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.
“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation,” he said, adding that one of the major problems confronting Nigeria is “debt without productivity.”
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Obi argued that responsible economies borrow with discipline and clear objectives, ensuring that loans are tied to investments capable of generating returns and strengthening economic capacity.
He cited the provisions of the Fiscal Responsibility Act 2007, which mandates that governments must specify the purpose of any borrowing and provide a cost-benefit analysis showing its economic and social impact.
He lamented that most of the country’s borrowings do not meet these requirements, noting that there is little evidence to show that such loans are enhancing productivity or improving the welfare of citizens.
“The humongous borrowing so far does not show how the projects for the loans enhance the productive capacity of the nation and the welfare of Nigerian citizens,” he stated.
Obi also raised concerns about Nigeria’s rising debt servicing burden, warning that the country’s high debt servicing ratio is limiting its ability to invest in critical sectors needed for economic growth and human development.
He stressed that focusing solely on debt-to-GDP ratio is misleading, insisting that the more critical issue is the proportion of revenue spent on servicing debt.
“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.
The former governor further warned that borrowing for non-productive uses creates a “double jeopardy,” as the country is forced to use current revenues to service debts that did not generate returns or improve future capacity.
“If the money is wrongly spent… it becomes double jeopardy because you are using current revenue to service debts that did not add to revenue or improve capacity for more production in the future,” he added.
Obi urged the government to adopt a more transparent and accountable approach to borrowing, insisting that loans must be clearly justified and aligned with the needs of the people.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people,” he said.
He concluded by expressing optimism about the country’s future, stating that “a new Nigeria is possible.”
