Former Labour Party presidential candidate, Peter Obi has stated that borrowing is not inherently bad for a nation, but stressed that what matters is how such borrowed funds are utilised.
Obi made the remarks during an interview on SYMFONI TV from 4:15 , where he assessed Nigeria’s fiscal direction and compared it with global economic practices.
Obi noted that many advanced economies frequently cited as models for development operate with significant levels of debt. He argued that national borrowing, when tied to productive investments, is a legitimate economic tool. “There is nothing wrong in a national borrowing. Most of the countries we want to emulate are in debt. America is 124% of their GDP in debt. China is almost about 80% now,” he said.
He explained that countries like the United States and China use debt strategically to expand critical infrastructure, grow their economies, and improve the welfare of their citizens. According to him, these countries have robust systems that ensure loans are channelled into productive sectors capable of generating returns that sustain their debt over time.
Obi, however, criticised Nigeria’s borrowing pattern, saying the problem lies not in the debt itself but in how borrowed funds are spent. He lamented that loans in Nigeria often go into recurrent expenditure, consumption, or projects that do not yield economic value, leaving the nation with rising debt but little development to show for it.
He warned that Nigeria is heading toward a dangerous fiscal path, where debt servicing consumes an overwhelming portion of government revenue. Obi reiterated the need for transparency, economic discipline, and investment in productive areas such as manufacturing, export-driven industries, education, and healthcare. View, More,
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