Peter Obi lambasts Tinubu, says borrowing for consumption is “leprous and a killer cancer”

Politics

ABUJA, Nigeria (NPA) — Former Anambra State governor and 2027 presidential hopeful, Peter Obi, has criticized the borrowing pattern of President Bola Ahmed Tinubu’s administration, alleging that many of the loans obtained by the Federal Government fail to meet both legal requirements and economic prudence.

Obi argued that the scale of borrowing under the current administration has not been matched with clear evidence showing how the funds would improve Nigeria’s productive capacity or the welfare of citizens.

In a statement released on Thursday and titled “When Borrowing is Leprosy and Cancerous,” the former Labour Party presidential candidate warned that debt becomes dangerous when used for consumption rather than productive investment.

“Borrowing is not only a leprosy, but a killer cancer when it is borrowed for consumption and not production as it is in Nigeria today,” Obi said.

According to him, borrowing for consumption gradually weakens a nation’s economic health, damages its reputation and undermines its long-term autonomy.

“One of the major ‘leprosy’ afflicting Nigeria today is not just debt, but debt without productivity — debt that is not tied to measurable economic value, jobs, growth, or improved living standards for the Nigerian people,” he stated.

Obi maintained that no serious economy borrows recklessly, stressing that countries only borrow with discipline, defined objectives and sustainable repayment plans tied to productive investments.

Citing provisions of the Fiscal Responsibility Act 2007, Obi noted that any government seeking to borrow is legally required to specify the purpose of the loan and provide a cost-benefit analysis detailing its economic and social benefits.

Quoting directly from the law, Obi said: “Any government in the Federation or its agencies and corporations desirous of borrowing shall specify the purpose for which the borrowing is intended and present a cost-benefit analysis detailing the economic and social benefits.”

He argued that many of the loans secured by the current administration do not adequately demonstrate how they would stimulate economic growth or improve the lives of Nigerians in measurable terms.

The former governor further warned that Nigeria’s rising debt servicing obligations could severely constrain future economic growth and limit government capacity to invest in critical sectors.

“What matters is not debt-to-GDP as much as debt-to-debt servicing ratio because the latter constrains our capacity to finance the sectors that drive human development and economic growth,” Obi said.

He added that when borrowed funds are poorly utilized, the country is left servicing debts that neither generate revenue nor enhance future productive capacity.

“If the money is wrongly spent as we do in Nigeria currently, it becomes double jeopardy because you are using current revenue to service debts that did not add to revenue or improve capacity for more production in the future,” he stated.

Obi concluded by insisting that governments must go beyond merely defending loans and instead ensure transparency, accountability and tangible benefits to citizens. “A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people,” he said.