The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has urged the Nigerian government to emulate South Africa’s approach to public borrowing, stressing that transparency, accountability and measurable outcomes should guide every loan obtained on behalf of citizens.
Obi made the remarks on Thursday in a post shared via his verified X account, where he argued that borrowing is a normal and necessary aspect of governance when properly managed and directed towards productive investments.
According to the former Anambra State governor, the real issue is not whether a government borrows money, but whether the borrowed funds are utilised transparently and in ways that deliver tangible benefits to the people.
“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,” Obi stated.
The former presidential candidate pointed to South Africa’s recent acquisition of a $1 billion loan from the New Development Bank as an example of responsible and accountable borrowing. He noted that the purpose of the loan was clearly defined, the projects to be funded were identifiable, and the anticipated benefits to citizens could be measured.
“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,” he wrote.
Obi described the South African model as a benchmark for good governance, arguing that such investments directly improve living standards, boost productivity and stimulate economic growth.
In contrast, he criticised Nigeria’s current borrowing practices, claiming that the country’s rising debt profile has not been matched by sufficient transparency regarding how the funds are being spent.
According to him, Nigeria’s public debt has increased significantly under the current administration, rising from approximately ₦87 trillion in 2023 to nearly ₦200 trillion. Despite the sharp increase, he argued that many Nigerians remain uncertain about the specific projects and programmes financed through these borrowings.
“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,” Obi said.
He further maintained that loans secured in the name of the Nigerian people should be tied to productive investments capable of creating jobs, reducing poverty and generating economic value.
The former governor also called for greater fiscal discipline, especially at a time when many Nigerians are grappling with rising living costs, unemployment, insecurity and declining purchasing power.
“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,” he stated.
Obi concluded by warning that borrowing without clear benefits risks placing unnecessary burdens on future generations. He argued that every debt decision should be evaluated based on a simple standard: whether it improves the lives of ordinary Nigerians.
His comments add to the ongoing national debate over Nigeria’s growing debt profile and the need for greater accountability in the management of public finances, as political leaders and economic stakeholders continue to discuss strategies for sustainable economic development ahead of the 2027 general elections.
