Peter Obi, who ran for president with the Labour Party, criticized the Nigerian government’s borrowing practices as unproductive on his verified X account on Tuesday. He pointed out that despite Nigeria’s public debt growing, it hasn’t significantly benefited the economy.
Peter Obi, the former governor of Anambra, highlighted that the recent government accumulated a substantial debt, notably with the N30 trillion “ways and means” from the central bank, which, in his view, could have avoided further borrowing. He argued that this debt has not added any value to the country.
“I’m really worried about our increasing debts over the years and how they affect our economy,” Obi said. He also expressed concern over the lack of visible investment or impact from these borrowings, as required by law.
This statement comes shortly after the Debt Management Office (DMO) reported that by the end of 2023, Nigeria’s public debt had risen by 10 percent to N97.3 trillion, including N59.12 trillion in domestic debt and N38.22 trillion in external debt.
Obi also noted that in 2023, Nigeria spent a huge sum, N10 trillion, on servicing both its domestic and external debt, which he labeled as “unproductive debts.” He compared this expenditure to the combined budget allocations for defense, education, health, and infrastructure, which are key priority areas but receive significantly less funding.
He urged the government to reduce its borrowing and evaluate the effectiveness of previous loans to address the growing debt concern.
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