‘Copy South Africa’ – Peter Obi decries Nigeria’s ‘unproductive’ borrowing
NDC Presidential Candidate Urges Nigeria to Follow South Africa’s Borrowing Practices
Peter Obi, the presidential candidate for the Nigeria Democratic Congress (NDC), has called for a reassessment of Nigeria’s borrowing practices, suggesting that the country should take cues from South Africa.
In a statement posted on his verified X account on Thursday, Obi emphasized that borrowing itself is not inherently negative; rather, the critical factor is the transparency surrounding the use of borrowed funds.
The former governor of Anambra State described South Africa’s approach to borrowing as a model of accountability, highlighting that its loans are tied to clearly defined purposes and identifiable projects with measurable benefits for its citizens. He stated that such investments can significantly enhance living conditions, increase 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 see the impact of such borrowing in their daily lives,” Obi wrote.
He specifically referenced South Africa’s recent $1 billion loan from the New Development Bank, praising its transparent intentions and management.
In contrast, Obi expressed concern over Nigeria’s rising public debt, which he claimed has escalated from approximately ₦87 trillion in 2023 to nearly ₦200 trillion. He criticized the current administration for a lack of transparency, stating that Nigerians have not received clear accounts of how these loans are being utilized in vital 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,” he added.
Obi stressed the importance of good governance, advocating for transparency and accountability. He maintained that the government must clearly outline what was borrowed, where the funds were invested, and what measurable outcomes were achieved. He asserted that Nigerians should see tangible benefits from every debt incurred on their behalf.
In a time when many Nigerians are grappling with rising living costs, unemployment, insecurity, and declining purchasing power, he called for fiscal discipline and prudent management of public resources, deeming them imperative rather than optional.
“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,” Obi concluded.
