Former Labour Party presidential candidate Peter Obi has expressed concerns over Nigeria’s growing debt burden, warning that the country’s rising debt servicing obligations could undermine investments in healthcare, education, and poverty alleviation.
Reacting to comments made by President Bola Tinubu during a recent foreign tour, Obi said Nigeria’s projected spending of about $11.6 billion on debt servicing should worry citizens concerned about the nation’s economic future.
“During his recent foreign tour, President Bola Ahmed Tinubu stated that Nigeria will spend about $11.6 billion on debt servicing, a figure that should concern anyone interested in the country’s economic future and long-term development,” Obi stated.
He noted that borrowing itself is not necessarily harmful when tied to productive investments capable of generating sustainable economic returns.
“There is nothing inherently wrong with borrowing when it is guided by prudence and directed toward productive investment,” he said.
Obi cited countries such as Japan, United Kingdom, United States, United Arab Emirates, Singapore, and Indonesia as examples of nations with high debt levels that channel borrowings into infrastructure, healthcare, education, and innovation.
“As a result, despite high debt levels, their obligations remain more manageable because they are tied to measurable productivity,” he added.
Obi added ” Nigeria’s situation is different because a huge proportion of past borrowing has been directed toward consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness.”
