In a recent post on X on Nigeria’s “debt servicing, borrowing and fiscal priorities”, former Governor of Anambra State, Peter Obi, reacted to President Bola Ahmed Tinubu’s statement during his recent foreign tour that, “Nigeria will spend about $11.6 billion on debt servicing”.
That “figure should concern anyone interested in the country’s economic future and long-term development”, he said.
However, the former Labour Party (LP) member said, “there is nothing inherently wrong with borrowing”, but, it must be guided by “prudence”, and, channelled towards productive investment.
He listed countries that are “heavily indebted”, they include, “Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore, and Indonesia”, however, they borrow to enhance sectors such as “education, healthcare, infrastructure, and innovation”, which will bring about “long-term economic returns and sustain repayment capacity”.
Obi lamented on the borrowing situation of Nigeria, describing it as “markedly different”. He said, a “huge proportion” of past borrowing has been directed toward “consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness”.
The Nigeria Democratic Congress (NDC) member pointed fingers at the Tinubu administration for Nigeria’s “huge debt”, saying, “It is also important to note that a huge portion of the debt currently being serviced was accumulated under the Tinubu administration itself”.
Obi said, all the recent external borrowing under this administration brings Nigeria’s “latest known external loan commitments to roughly $7.8 billion”.
“Ultimately, the central issue is not borrowing itself, but whether borrowed funds are being converted into measurable productivity, inclusive growth, and improved living standards”, the former African Democratic Congress (ADC) said.
