By Seun Ibiyemi
Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has criticised the administration of President Bola Tinubu over what he described as the opaque deployment of borrowed funds, warning that Nigeria’s public debt has surged to nearly N200 trillion without corresponding improvements in citizens’ welfare.
Obi, in a post on his verified X handle on Thursday, accused the government of failing to provide Nigerians with a clear account of how borrowed funds are being utilised, despite the country’s rapidly rising debt profile.
Drawing a comparison with South Africa’s recently secured $1 billion loan from the New Development Bank, Obi said Nigeria should emulate countries that openly disclose the purpose of borrowing and the projects being financed.
According to him, South Africa’s approach reflects transparency and accountability, with citizens able to identify the projects funded by the loan and assess the benefits accruing from them.
“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,” Obi said.
The former Labour Party presidential candidate maintained that borrowing is not inherently wrong, but insisted that every loan must be tied to productive investments capable of generating economic value, creating jobs and improving living standards.
He expressed concern that Nigeria’s total public debt had risen from about N87 trillion in 2023 to nearly N200 trillion under the current administration, alleging that Nigerians have received little explanation on how the funds have been spent.
“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,” he stated.
Obi argued that government borrowing should not become an end in itself but should be directed at projects that deliver measurable benefits to citizens.
He further stressed that good governance requires transparency, accountability and prudent management of public resources, especially at a time when many Nigerians are grappling with rising living costs, unemployment, insecurity and declining purchasing power.
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“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,” he said.
The former governor warned that failure to ensure accountability in borrowing could leave future generations burdened with debts incurred without tangible economic gains.
According to him, every borrowing decision should be evaluated against a simple benchmark: whether it improves the lives of ordinary Nigerians.
“If that question cannot be convincingly answered, then we risk merely transferring today’s burdens to future generations,” Obi added.
