The Labour Party presidential candidate in the 2023 election, Peter Obi, has said Nigeria’s rising debt profile is not the core problem, but how borrowed funds are utilised.
In a post on his X handle on Tuesday, Obi referenced recent World Bank data indicating that Nigeria is now the world’s third-largest debtor at about $18.7 billion, behind Bangladesh at $23 billion.
“Borrowing is not inherently wrong. Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment, as is the case in Nigeria,” he stated.
Obi compared Nigeria’s economic trajectory with that of Bangladesh, noting that around 2015, Bangladesh had a Gross Domestic Product (GDP) of approximately $195 billion and a per-capita income of about $1,235. By 2024–2025, he said, the country’s economy had expanded to between $460 billion and $500 billion, with per-capita income rising to about $2,700, driven by investments in manufacturing, textiles, energy and human capital.
“Nigeria, on the other hand, has seen its GDP fall from $490 billion in 2015 to below $250 billion today, with per-capita income dropping to $850–1,000. Factors include weak productivity growth, currency instability, structural inefficiencies, and corruption,” Obi said.
He argued that the contrast between both countries underscores the importance of channeling borrowed funds into productive sectors.
“One country borrowed and expanded production, exports, and incomes. The other borrowed but saw declining economic strength and living standards. Debt tied to infrastructure, industry, and human development fuels growth. Debt tied to consumption, leakages, and corruption deepens stagnation,” he added.
Obi concluded by expressing optimism about Nigeria’s prospects, stating: “A new Nigeria, where loans, if taken, translate into productivity instead of consumption, is very much possible.”