Former presidential candidate of the Labour Party, Peter Obi, has raised concerns over Nigeria’s rising debt servicing obligations, warning that the country’s growing debt profile could worsen economic challenges if borrowed funds are not channelled into productive sectors.
Speaking on the state of the economy, Obi stressed that loans should only be acquired for investments capable of generating measurable economic returns, creating jobs, and improving national productivity.
According to him, excessive borrowing without corresponding investment outcomes places enormous pressure on public finances and limits the government’s ability to fund critical sectors such as healthcare, education, infrastructure, and security.
He noted that a significant portion of government revenue is now being used to service existing debts, a situation he described as unsustainable for a developing economy seeking long-term stability and growth.
Obi argued that borrowing itself is not inherently wrong, but insisted that loans must be tied to projects that can stimulate economic expansion, boost exports, support industrialisation, and increase national revenue.
He further emphasised the need for transparency and accountability in the management of public debt, urging authorities to ensure that borrowed resources are efficiently utilised and properly monitored.
The former Anambra State governor also called for stronger fiscal discipline and prudent economic planning, maintaining that Nigeria must reduce wasteful spending and focus on productive investments capable of improving living standards.
He warned that continued reliance on borrowing to finance recurrent expenditure could deepen the nation’s financial vulnerabilities and increase the burden on future generations.
Obi urged policymakers to prioritise economic policies that encourage local production, support small businesses, strengthen investor confidence, and expand the country’s revenue base instead of depending heavily on debt accumulation.
He maintained that sustainable economic growth would only be achieved through responsible financial management, increased productivity, and strategic investments that directly benefit citizens and the wider economy.
