Former Anambra State governor and Labour Party presidential candidate, Peter Obi, has raised concerns over Nigeria’s rising debt profile, warning that borrowing without corresponding economic growth is deepening the country’s financial challenges.
Obi made the remarks on Tuesday via his X (formerly Twitter) platform while reacting to recent World Bank reports indicating that Nigeria is now the institution’s third-largest debtor, with obligations estimated at about $18.7 billion. Bangladesh ranks first with approximately $23 billion.
According to Obi, borrowing in itself is not problematic if funds are channelled into productive sectors that stimulate growth.
“There’s nothing inherently wrong with borrowing. Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment,” he stated.
Bangladesh vs Nigeria: A Decade of Divergent Outcomes
Obi compared Nigeria’s economic trajectory with that of Bangladesh to illustrate how effective use of borrowed funds can transform an economy.
He noted that around 2015, Bangladesh’s nominal GDP stood at roughly $195 billion, with per capita income slightly above $1,235. By 2024–2025, its economy had expanded to between $460 billion and $500 billion, while per capita income rose to about $2,700.
He attributed this growth to investments in manufacturing, textiles, energy, and human capital, suggesting that borrowed resources were largely channelled into productive sectors.
In contrast, Obi said Nigeria’s economy has weakened over the same period. He recalled that in 2015, Nigeria’s GDP was about $490 billion, with per capita income around $2,600–$2,700. Today, he noted, GDP has fallen to below $250 billion, with per capita income estimated between $850 and $1,000.
He blamed weak productivity growth, currency instability, structural inefficiencies, and corruption for the decline.
Call for Productive Borrowing
Obi stressed that the key issue is not the size of borrowing but how borrowed funds are utilised.
“Debt tied to infrastructure, industry, and human development fuels growth. Debt tied to consumption, leakages, and corruption deepens stagnation,” he said.
He expressed optimism that Nigeria can chart a new course where loans, if obtained, are used to drive productivity and economic expansion rather than consumption.
“A new Nigeria where loans, if taken, will translate into productivity instead of consumption is very much possible,” Obi added.
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