Obi Likens FG's Borrowing As Leprous, Cancerous Without Productivity

Former governor of Anambra State and presidential candidate of the Labour Party, LP, in the 2023 elections, Peter Obi, has lampooned Nigeria’s borrowing pattern, warning that debt incurred without productive investment poses a grave threat to the nation’s economic future. 
Obi also, said that a "responsible does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people.” 
In a statement posted on his X account on Thursday, Obi described borrowing for consumption as both “a leprosy” and “a killer cancer,” warning that such practices erode the country’s economic health and sovereignty.
“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,” he added. 
Obi further noted that Nigeria’s core challenge was not merely rising debt levels, but the absence of measurable economic value tied to such borrowings. 
According to him, “Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation," even as  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  debt that does not translate into jobs, growth, or improved living standards for the Nigerian people.
“Most of the borrowings by this government do not satisfy the requirements of law or the requirements of economic common sense,” he added.
He emphasised that responsible economies borrow with discipline and clear repayment strategies anchored on productive investments, noting that Nigeria’s approach falls short of both legal and economic standards.
On the Fiscal Responsibility Act 2007, 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,” pointing out that such analysis must demonstrate how loans would drive economic growth and improve citizens’ welfare in measurable terms.
Expressing concern over the opaque nature of Nigeria's borrowing pattern arguing that the scale of borrowing has not translated into enhanced productive apacity or improved living conditions.
He also further warned about the implications of Nigeria’s rising debt servicing obligations, stressing that the country faces one of the highest debt service ratios in the world. 
“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,” he said.
According to him, misapplied loans create a “double jeopardy,” where current revenues are used to service debts that neither boost revenue, economy or expand future production capacity.