Peter Obi, former Anambra State governor and Labour Party presidential candidate, has expressed concern over Nigeria’s rising debt profile, accusing the Federal Government of borrowing heavily without delivering meaningful productivity or real economic progress.
In a post shared on X, Obi referenced recent World Bank reports which show that Nigeria is now the third-largest debtor to the institution, with obligations estimated at about $18.7 billion. He noted that Bangladesh currently ranks first, owing roughly $23 billion.
Obi said borrowing in itself is not the problem, explaining that countries often take loans to stimulate growth and improve productivity. However, he argued that debt becomes harmful when it is used to finance consumption, inefficiency or corruption rather than long-term investment.
To illustrate his point, Obi compared Nigeria’s economic trajectory with Bangladesh’s over the past decade. He noted that in 2015, Bangladesh had a nominal GDP of about $195 billion and a per-capita income slightly above $1,235. By 2024–2025, he said, Bangladesh’s economy had expanded to between $460 billion and $500 billion, with per-capita income rising to around $2,700.
According to Obi, Bangladesh channelled borrowed funds into productive sectors such as manufacturing, textiles, energy and human capital development, leading to stronger exports and rising incomes.
In contrast, he said Nigeria’s economy has moved in the opposite direction. Obi stated that Nigeria’s GDP stood at about $490 billion in 2015, with per-capita income between $2,600 and $2,700, but has since fallen to below $250 billion, while per-capita income now ranges between $850 and $1,000. He attributed the decline to weak productivity growth, currency instability, structural inefficiencies and corruption.
“The contrast is instructive,” Obi wrote. “One country borrowed and expanded production, exports and incomes. The other borrowed but saw declining economic strength and living standards.”
He concluded by calling for a change in policy direction, insisting that Nigeria must prioritise borrowing that supports infrastructure, industry and human development, rather than consumption.