Dare Babalola
The Labour Party’s presidential candidate in the 2023 election, Peter Obi, has emphasised that Nigeria’s escalating debt burden is not the primary concern, but rather the utilisation of borrowed funds.
In a post on his X handle on Tuesday, Obi stressed that effective management of resources is key to the country’s development.
The former presidential candidate said recent World Bank data show Nigeria is now the world’s third-largest debtor, with obligations of around $18.7 bn, behind Bangladesh at $23 bn.
“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 said.
Obi compared Nigeria’s trajectory with Bangladesh’s, saying that around 2015, Bangladesh had a GDP of roughly $195 billion and a per-capita income of about $1,235. By 2024–2025, the economy had grown to $460–500 billion, and per-capita income rose to $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.
“The contrast is clear. “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 said.
Obi concluded with optimism: “A new Nigeria, where loans, if taken, translate into productivity instead of consumption, is very much possible.”
Recall that Nigeria’s total public debt increased to N153.29tn as of September 30, 2025, reflecting a steady build-up in both domestic and external obligations within three months, according to data released by the Debt Management Office on Friday.
