Abuja, NIGERIA — Former presidential candidate Peter Obi has issued a response to President Bola Ahmed Tinubu’s recent defense of the nation’s borrowing policy. Reacting to the President’s assertion that “borrowing is not leprosy,” Obi argued on Thursday, that debt becomes a “killer cancer” when it is utilized for consumption rather than productive investment. The critique highlights the widening ideological rift between the administration’s infrastructure-led borrowing and the opposition’s focus on fiscal discipline.
Obi contended that the primary “leprosy” afflicting Nigeria is not the debt itself, but the lack of productivity tied to it. He noted that borrowing for consumption erodes national autonomy and reputation, specifically pointing out that the current administration’s loans often fail to translate into jobs or improved living standards.
Okay News reports that Obi emphasized the Fiscal Responsibility Act of 2007, which mandates a cost-benefit analysis for all government loans—a requirement he claims the current government has largely ignored.
In a breakdown of the economy’s health, Obi dismissed the administration’s reliance on the Debt-to-GDP ratio as a metric of safety. Instead, he warned that the debt-servicing-to-revenue ratio is the true danger, as it constrains the government’s capacity to finance education, healthcare, and economic growth. According to Obi, using current revenue to service debts that did not add to future revenue creates a “double jeopardy” that burdens future generations of Nigerians.
The timing of this critique coincides with the Senate’s recent approval of a $516.3 million (approx. ₦702.2 billion) loan for the Sokoto–Badagry Super Highway. While President Tinubu maintains that these projects are essential for the “Renewed Hope” agenda, Obi insists that a responsible government must justify and explain how every kobo works for the people.
