The 2027 presidential candidate of the Nigeria Democratic Congress (ADC), Mr. Peter Obi, has expressed concern over Nigeria’s rising debt profile, arguing that the country’s growing borrowings have not translated into visible improvements in the lives of ordinary citizens.
Obi said while borrowing was not inherently wrong, the government must be transparent about the purpose of every loan and demonstrate measurable outcomes from the resources obtained in the name of the people.
He stated this on his ‘X’ handle yesterday while comparing Nigeria’s debt management approach with that of South Africa, which recently secured a $1 billion loan from the New Development Bank with clearly stated objectives.
According to him, South Africa publicly disclosed that the facility would be deployed towards upgrading water supply systems, modernising sanitation infrastructure, improving electricity distribution and strengthening waste management services across eight major metropolitan cities, including Johannesburg, Cape Town and Durban.
Obi described the South African model as an example of accountable borrowing, where the purpose of the debt is clear, projects are identifiable and citizens can monitor the expected benefits.
He, however, lamented that Nigeria’s public debt had increased from about N87 trillion in 2023 to nearly N200 trillion under the current administration, yet Nigerians had not received adequate information on how such huge borrowings had been deployed to transform critical sectors such as education, healthcare, electricity, security and infrastructure.
“Borrowing must never become an end in itself. Every loan obtained in the name of the Nigerian people must be tied to a specific, productive investment, capable of generating economic value, creating jobs, reducing poverty and improving the welfare of citizens,” Obi stated.
The 2023 presidential candidate of the Labour Party stressed that good governance required transparency and accountability, adding that the government should be able to explain what was borrowed, where the funds were invested and the measurable outcomes achieved.
He maintained that at a period when millions of Nigerians were battling rising living costs, unemployment, insecurity and declining purchasing power, fiscal discipline and prudent management of public resources had become a necessity.
Obi said every borrowing decision should answer a fundamental question of how it improves the life of the ordinary Nigerian, warning that failure to ensure accountability could amount to transferring the burden of today’s debts to future generations.
Credit: The Sun