NDC presidential candidate Peter Obi has called for greater transparency and accountability in Nigeria’s borrowing practices, citing South Africa’s recent $1 billion loan from the New Development Bank as a model worthy of emulation.
In a statement on Thursday, Obi said borrowing is not inherently bad, stressing that what matters is how the funds are utilized and whether citizens can clearly see the impact of the debt on their daily lives.
According to him, South Africa openly disclosed the purpose of its newly secured loan, earmarking the funds for upgrading water supply systems, modernising sanitation infrastructure, improving electricity distribution, and strengthening waste management services across major cities including Johannesburg, Cape Town, and Durban.
Obi described the approach as an example of accountable borrowing, where projects are clearly defined, measurable, and directly beneficial to citizens.
The former Anambra State governor, however, expressed concern over Nigeria’s growing debt profile, claiming that the country’s public debt has risen from about ₦87 trillion in 2023 to nearly ₦200 trillion under the current administration.
He argued that despite the sharp increase in borrowing, many Nigerians remain unclear about how the funds are being deployed to improve critical sectors such as education, healthcare, power, security, and infrastructure.
“Borrowing must never become an end in itself,” Obi said, insisting that every loan obtained in the name of Nigerians should be tied to productive investments capable of creating jobs, reducing poverty, stimulating economic growth, and improving citizens’ welfare.
He further stressed that government has a responsibility to explain what was borrowed, where the money was invested, and the measurable outcomes achieved from such investments.
Peter Obi warned that with millions of Nigerians facing rising living costs, unemployment, insecurity, and declining purchasing power, fiscal discipline and prudent management of public resources have become more important than ever.
