Peter Obi has criticised President Bola Tinubu over his recent comments defending government borrowing, warning that loans used for consumption could harm the country’s future.

Tinubu had said on Wednesday during a meeting with Plateau leaders at the State House that his administration would continue to borrow when necessary.

“If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it,” the president said.

Reacting in a statement on Thursday, Obi disagreed with the president’s position, arguing that borrowing becomes dangerous when it is not tied to productive investments.

“Mr. President, 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.

He warned that borrowing for consumption could weaken the country’s economic foundation over time.

“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation,” he said.

The former Anambra governor said Nigeria’s growing debt burden is worsened by the absence of clear economic value from borrowed funds.

“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, and does not translate into jobs, growth, or improved living standards for the Nigerian people,” he said.

Obi noted that while borrowing is not inherently bad, it must be backed by discipline and tied to investments that can generate returns.

He referenced the Fiscal Responsibility Act 2007, which requires governments to clearly state the purpose of borrowing and outline expected economic and social benefits.

“Most of the borrowings by this government do not satisfy the requirements of law or the requirements of economic common sense,” Obi said.

“The humongous borrowing so far does not show how the projects for the loans enhance the productive capacity of the nation and the welfare of Nigerian citizens.”

He also raised concerns about Nigeria’s rising debt servicing obligations, describing it as a constraint on development.

“These loans are also dangerous because they burden the capacity of the Nigerian state to improve the economy in the future, as we have one of the world’s highest debt servicing ratios,” he said.

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

Obi added that borrowing for non-productive purposes creates a “double jeopardy” for the country.

“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 said.

“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people. (Nigerian Tribune)

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