Peter Obi Demands Clarity on Nigeria’s Debt, Praises South Africa’s Transparent Borrowing Approach

Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC) for the 2027 elections, has urged the Federal Government to provide clear explanations on how Nigeria’s growing debt is being spent, citing South Africa’s handling of a $1 billion development loan as a model of transparency.

The former Anambra State governor noted that South Africa openly detailed the projects the loan would support, including upgrades to water systems, sanitation facilities, electricity distribution networks, and urban waste management, arguing that such transparency enables citizens to monitor implementation and demand accountability.

In a statement released on Thursday, Obi said the South African example shows that borrowing can be responsibly managed when governments clearly communicate the purpose and expected outcomes of loans obtained.

He maintained that while borrowing is a common global practice used to fund infrastructure and development needs, it must always be accompanied by openness and measurable impact.

“There is much to learn from the open and transparent manner in which South Africa secured and explained the purpose of its loan facility. Citizens know what the money is meant for and can monitor the projects,” he said.

Obi expressed concern over Nigeria’s rising debt burden, noting that public debt has increased from about ₦87 trillion in 2023 to nearly ₦200 trillion in a short period, with limited clarity on the specific projects financed by such borrowing.

He said funds borrowed in the name of Nigerians should be tied to productive sectors that generate employment, stimulate growth, reduce poverty, and improve living standards, stressing that citizens deserve full accountability on debt utilisation.

The NDC presidential candidate also warned that continued borrowing without visible developmental outcomes could worsen the burden on future generations, especially amid inflation, unemployment, insecurity, and declining purchasing power.

He called for stricter fiscal discipline, improved transparency in public finance, and stronger oversight of borrowing decisions, adding that the effectiveness of any loan should be judged by its impact on ordinary citizens’ welfare.

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