The presidential candidate of the Labour Party in the 2023 general election, Peter Obi, has criticized the borrowing profile of the administration of President Bola Ahmed Tinubu, alleging that the current government has accumulated more debt in three years than the immediate past administration of former President Muhammadu Buhari did in eight years.
Obi made the assertion while expressing concerns over Nigeria’s rising debt burden and its implications for economic growth, fiscal sustainability, and the welfare of citizens.
According to the former Anambra State governor, the Tinubu administration has engaged in what he described as “remarkably imprudent borrowing,” leading to a significant increase in the country’s public debt stock within a relatively short period.
He argued that while borrowing is not inherently bad, loans should be tied to productive investments capable of stimulating economic growth, creating jobs, boosting exports, and improving the living standards of Nigerians.
Obi maintained that the continuous accumulation of debt without corresponding improvements in critical sectors such as infrastructure, healthcare, education, and manufacturing raises concerns about the country’s fiscal future.
The Labour Party chieftain called on the federal government to prioritize prudent management of public resources, reduce wasteful spending, and channel borrowed funds into projects that would yield measurable economic returns.
He further urged policymakers to focus on increasing productivity, supporting local industries, and expanding the nation’s revenue base rather than relying heavily on borrowing to finance government operations.
Obi’s comments come amid ongoing debates over Nigeria’s debt profile and the sustainability of the country’s fiscal policies, with economists and financial experts continuing to weigh in on the government’s borrowing strategy and its impact on future generations.
As of recent years, Nigeria’s public debt has continued to rise due to a combination of domestic and external borrowings aimed at funding budget deficits, infrastructure projects, and other government obligations.
The Federal Government has, however, consistently defended its borrowing strategy, arguing that the loans are necessary to finance development projects, stimulate economic growth, and address critical infrastructure gaps across the country.