Peter Obi has criticised the borrowing pattern under the administration of Bola Tinubu, warning that excessive loans are undermining Nigeria’s long-term economic prospects.

In a statement issued on Thursday, the former Anambra State governor expressed concern that the country’s rising debt profile, particularly its high debt-servicing obligations, is limiting the government’s ability to invest in critical sectors that drive growth and development. He argued that the ratio of debt servicing to revenue is more significant than the debt-to-GDP ratio, as it directly affects the nation’s capacity to fund human development and economic expansion.

Obi emphasised that borrowing becomes harmful when it is directed toward consumption rather than productive ventures. According to him, loans that are not tied to tangible economic value—such as job creation, infrastructure, or improved living standards—gradually weaken a nation’s economic strength, credibility, and independence.

He cautioned that indiscriminate borrowing without clear returns could severely damage the country’s future, stressing that responsible economies take loans with clear objectives, disciplined frameworks, and viable repayment strategies anchored on productive investments.

Referencing the Fiscal Responsibility Act 2007, Obi maintained that many of the loans secured by the current administration do not meet legal or economic benchmarks. He argued that there is little evidence showing how the borrowed funds are being utilised to boost productivity or enhance citizens’ welfare.

The former presidential candidate further warned that poorly managed debt could derail Nigeria’s economic development, urging the government to ensure that any borrowing is transparently justified and effectively deployed for the benefit of the population.