Peter Obi Critiques Nigeria's Borrowing Strategy for Growth

Peter Obi, the former Labour Party presidential candidate and ex-governor of Anambra State, criticized the Federal Government's borrowing strategy, asserting that loans are not translating into economic growth or improved living standards. He made these comments on April 30, 2026, amid concerns over Nigeria's increasing debt profile.

Obi warned that borrowing for consumption rather than productive investment is detrimental to the economy, which he identified as a major challenge. He emphasized the need for fiscal discipline and a clear purpose in borrowing, as outlined in the Fiscal Responsibility Act of 2007, which requires a cost-benefit analysis for government borrowing.

The current administration, led by President Bola Ahmed Tinubu, has sought to secure financing for infrastructure projects, including the Sokoto-Badagry Superhighway, with a loan arrangement from Deutsche Bank. Recent reports indicate a significant increase in the government's borrowing plans for 2026, raising the fiscal deficit estimate to N31.46 trillion against projected expenditures of N68.32 trillion, highlighting a reliance on debt financing.