Peter Obi, a former governor known for his use of historical examples to make political points, has compared Nigeria’s first major loan in 1964 to its current debt to show how destructive the country’s recent borrowing has been. He argued that the first loan was a good example of responsible borrowing for productive projects, while today’s debt is a symbol of waste and spending.
Speaking to SYMFONI, Obi told the story of how Prime Minister Tafawa Balewa’s government borrowed $82 million in 1964 to build the Kainji Dam. This project was meant to help the economy grow and is still in use 58 years later. He compared this to the country’s current debt of $120 billion (which is ₦58 trillion), for which he said there is nothing similar to show.
This historical comparison was a strong criticism of the country’s recent leaders. It showed a major decline in the quality of governance, a change from nation-building to a culture of wasteful spending.
He said, “The first loan we borrowed was in 1964 when we borrowed money under Tafawa Balewa. He borrowed $82 million to build Kainji Dam to generate 760 megawatts of electricity. If you read the letter of the borrowing, he said, ‘I’m borrowing to build this facility in order to create an economic development for my country.’ 58 years after, Kainji Dam is still standing. The one we borrowed today, where is the Kainji? Because it was borrowed for consumption. Today, we are owing $120 billion.”
