Former Labour Party presidential candidate Peter Obi has sharply criticised Nigeria’s rising debt burden, labelling the country’s current borrowing pattern as “debt without growth” and pointing to Bangladesh as a powerful example of how loans can instead drive genuine economic progress.
In a February 24, 2026 post on X, Obi referenced recent World Bank data showing Nigeria as the third-largest debtor to the International Development Association (IDA), with outstanding obligations of about $18.7 billion.
Bangladesh ranks first with roughly $23 billion.Obi stressed that borrowing is not the issue when used wisely.
“There’s nothing inherently wrong with borrowing,” he wrote. “Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment.”
He drew a clear decade-long comparison to highlight the starkly different outcomes:Bangladesh: Nominal GDP grew from around $195 billion in 2015 (per-capita income ≈ $1,235) to between $460–500 billion by 2024–2025, with per-capita income rising to about $2,700.
Obi attributed this success to strategic use of borrowed funds in manufacturing, garment exports, infrastructure, and human capital development turning concessional loans into engines of sustained growth and higher living standards.
Nigeria: In 2015, nominal GDP stood at about $490 billion with per-capita income in the $2,600–2,700 range.
Today, Obi said GDP has fallen below $250 billion and per-capita income to roughly $850–1,000, blaming currency instability, structural inefficiencies, weak productivity, and pervasive corruption for preventing borrowed money from delivering development.
Obi noted Nigeria’s IDA debt rose by $1.9 billion (≈11%) in 2025 alone, reflecting heavy reliance on concessional financing amid revenue constraints.
While IDA loans offer favourable terms for infrastructure, education, and poverty reduction, Nigeria’s growing debt relative to economic output continues to raise serious sustainability questions.
His comments echo longstanding concerns about Nigeria’s borrowing trajectory including opposition to large proposed loans such as the nearly ₦18 trillion suggested for the 2026 budget which he says increase debt-service costs and squeeze essential social spending.
Bangladesh, Obi argued, demonstrates how disciplined debt management, stable ratios, and export-led investment can produce real gains for citizens.
Nigeria, he insisted, must urgently adopt stronger institutions, transparency, and a shift toward productive rather than consumption-driven borrowing.“
"A new Nigeria where loans, if taken, will translate into productivity instead of consumption is very much possible,” Obi concluded, urging leaders to prioritise accountability and strategic economic planning for lasting national progress.
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