Former presidential candidate Peter Obi has criticised the borrowing pattern of President Bola Ahmed Tinubu, warning that loans used for consumption rather than production pose a serious threat to Nigeria’s economic future.
In a statement shared on his X account, Obi described such borrowing as dangerous, likening it to a “killer cancer” that could erode the country’s economic stability. He argued that debt, when not tied to productive investments, undermines growth and weakens national development.
According to him, “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.
Obi stressed that Nigeria’s major problem is not just rising debt levels, but the lack of measurable economic value from borrowed funds. He noted that many loans do not translate into job creation, economic growth, or improved living standards for citizens.
He further argued that responsible economies borrow with discipline, ensuring that loans are linked to productive investments and backed by clear repayment plans. In contrast, he said Nigeria’s current approach falls short of both economic logic and legal requirements.
Citing the Fiscal Responsibility Act 2007, Obi maintained that government borrowing should be tied to specific purposes and accompanied by cost-benefit analysis, adding that many existing loans do not meet these standards.
The former Anambra State governor also raised concerns over Nigeria’s rising debt servicing burden, warning that it limits the government’s ability to invest in critical sectors that drive development and improve citizens’ welfare.
His remarks come amid ongoing debates over the Tinubu administration’s borrowing strategy, particularly following the president’s defence of external loans as necessary for national development.
