‘Copy South Africa’ – Peter Obi decries Nigeria’s ‘unproductive’ borrowing

The Nigeria Democratic Congress, NDC, presidential candidate, Peter Obi, has charged Nigeria to emulate South Africa in its borrowing patterns.

Obi gave the charge on Thursday in a post on his verified X handle, noting that borrowing itself is not a bad thing but the transparency is utilising the borrowed funds.

The former Anambra State governor described the South African pattern as what accountable borrowing should look like, noting that the purpose is clear, the projects are identifiable, and the expected benefits to citizens are measurable.

According to him, such investments directly improve living conditions, enhance productivity, and stimulate economic growth.

“I have consistently maintained that borrowing, in itself, is not a bad thing. Every nation borrows. The critical issue is not the act of borrowing, but what the borrowed funds are used for and whether citizens can clearly see and measure the impact of such borrowing in their daily lives.

“There is a lot to learn in the open and transparent manner in which South Africa handled its recently secured $1 billion loan from the New Development Bank, with a clearly defined purpose.

“This is indeed what accountable borrowing should look like; the purpose is clear, the projects are identifiable, and the expected benefits to citizens are measurable. Such investments directly improve living conditions, enhance productivity, and stimulate economic growth.

“In Nigeria, however, the opposite is the case: public debt has risen dramatically under the current administration, and its deployment is shrouded in secrecy from the people who will indeed pay back the loan. Today, our total public debt has increased from about ₦87 trillion in 2023 to nearly N200 trillion.

“Yet, despite this unprecedented accumulation of debt, Nigerians are often left without a clear and detailed account of how these borrowings are being deployed to improve critical sectors such as education, healthcare, power, 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 specific, productive investments capable of generating economic value, creating jobs, reducing poverty, and improving the welfare of citizens.

“Good governance demands transparency and accountability. The government must be able to clearly explain what was borrowed, where it was 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.

“At a time when millions of Nigerians are struggling with rising costs of living, unemployment, insecurity, and declining purchasing power, fiscal discipline and prudent management of public resources are no longer optional; they are imperative.

“Every borrowing decision should answer one simple question: How does this improve the life of the ordinary Nigerian? If that question cannot be convincingly answered, then we risk merely transferring today’s burdens to future generations,” he wrote.

‘Copy South Africa’ – Peter Obi decries Nigeria’s ‘unproductive’ borrowing