Presidential candidate Peter Obi has called on the Nigerian government to take a cue from South Africa’s approach to public borrowing, stressing that loans should be tied to clear, productive projects that citizens can easily track and benefit from.
In a post shared on his verified X account on Thursday, Obi said borrowing is not inherently wrong, as nations across the world rely on loans to finance development. However, he argued that the real concern lies in how borrowed funds are used and whether the public can see tangible results.
He pointed to South Africa’s recent $1 billion loan from the New Development Bank as an example of responsible borrowing, noting that the purpose of the facility, the projects it will fund, and the expected benefits are all clearly outlined.
According to Obi, such transparency ensures that borrowed funds improve infrastructure, raise productivity, enhance living standards, and drive economic growth.
The former Anambra State governor contrasted this with Nigeria’s growing debt profile, claiming that the country’s public debt has surged from about ₦87 trillion in 2023 to nearly ₦200 trillion, while details of how much of the borrowed funds are being invested remain unclear.
He expressed concern that Nigerians are yet to receive comprehensive explanations on how the loans have impacted key sectors such as education, healthcare, power supply, security, and infrastructure.
Obi maintained that every loan obtained on behalf of Nigerians should be directed toward projects capable of creating jobs, reducing poverty, and generating long-term economic value.
He also emphasized the need for greater accountability, saying government must provide clear information on how much was borrowed, where the funds were invested, and the measurable outcomes achieved.
With many Nigerians facing economic hardship, rising living costs, unemployment, and insecurity, Obi said prudent management of public resources has become essential.
He warned that borrowing without visible benefits risks placing a heavy burden on future generations and insisted that every debt decision should be judged by one key question: whether it improves the lives of ordinary Nigerians.
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