The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has urged Nigeria to adopt a more transparent and accountable approach to public borrowing, citing South Africa’s recent $1 billion loan arrangement as a model.
In a statement shared on his verified X account on Thursday, Obi said borrowing is not inherently harmful, provided the funds are tied to clearly defined projects with measurable benefits for citizens.
The former Anambra State governor praised South Africa’s handling of its loan from the New Development Bank, noting that the purpose of the borrowing, the projects involved, and the expected outcomes were made public.
“There is a lot to learn from the open and transparent manner in which South Africa handled its recently secured $1 billion loan,” Obi said, describing it as an example of accountable borrowing.
According to him, loans should be directed toward productive investments capable of improving living standards, boosting economic growth, creating jobs and enhancing national productivity.
Obi contrasted this with Nigeria’s growing debt profile, claiming that public debt has risen significantly in recent years without sufficient public disclosure on how the funds are being utilized.
He argued that citizens deserve clear information on how borrowed funds are invested, particularly in critical sectors such as education, healthcare, infrastructure, power and security.
“Borrowing must never become an end in itself,” Obi said. “Every loan obtained in the name of the Nigerian people must be tied to specific, productive investments capable of generating economic value and improving the welfare of citizens.”
The former governor also stressed the need for fiscal discipline and accountability, especially at a time when many Nigerians are facing economic hardship, rising living costs and unemployment.
He added that every borrowing decision should be judged by its impact on ordinary citizens, warning that poorly managed debt could place an unnecessary burden on future generations.
