Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reiterated that borrowing is not inherently bad, stressing that the real issue lies in how borrowed funds are utilized and whether citizens can see tangible benefits from such debts.
In a statement on Thursday, Obi pointed to South Africa’s recent $1 billion loan from the New Development Bank as a model of transparency and accountability in public borrowing.
According to him, the South African government openly disclosed the specific purpose of the loan, earmarking it for the upgrade of water supply systems, modernization of sanitation infrastructure, improvement of electricity distribution networks, and strengthening of waste management services across eight major cities, including Johannesburg, Cape Town, and Durban.
Obi said the approach reflects what accountable borrowing should look like, with clearly identified projects, measurable outcomes, and direct benefits for citizens.
“This is what responsible governance demands,” he stated. “The purpose is clear, the projects are identifiable, and the expected benefits to citizens are measurable. Such investments improve living conditions, enhance productivity, and stimulate economic growth.”
Drawing a contrast with Nigeria, Obi expressed concern over the country’s rising debt profile, arguing that citizens are often left in the dark about how borrowed funds are being deployed.
He noted that Nigeria’s total public debt has surged from about ₦87 trillion in 2023 to nearly ₦200 trillion, yet many Nigerians remain unaware of the specific projects and programmes funded by the borrowings.
“Despite this unprecedented accumulation of debt, Nigerians are rarely provided with a clear and detailed account of how these loans are being used to improve critical sectors such as education, healthcare, power, security, and infrastructure,” he said.
The former Anambra State governor warned that borrowing must never become an end in itself, insisting that every loan obtained in the name of Nigerians should be tied to productive investments capable of generating economic value, creating jobs, reducing poverty, and improving living standards.
He further called for greater transparency and accountability in public finance management, saying governments have a responsibility to explain what was borrowed, where the funds were 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,” Obi said.
He added that with millions of Nigerians grappling with rising living costs, unemployment, insecurity, and declining purchasing power, fiscal discipline and prudent management of public resources have become more important than ever.
Obi maintained that every borrowing decision should be subjected to a simple test: whether it improves the lives of ordinary Nigerians.
“If that question cannot be convincingly answered, then we risk merely transferring today’s burdens to future generations,” he cautioned.
