By Henry Umoru
Presidential candidate of the Nigeria Democratic Congress, NDC, ahead of the 2027 polls, Peter Obi has asked the Federal Government to, as a matter of urgency, tell the country how the nation’s mounting debt is being utilised, pointing to South Africa’s transparent handling of a recent $1 billion development loan as a model worthy of emulation.
The former Anambra State governor said that the South African government openly came up with projects the loan would finance, including upgrades to water supply networks, sanitation infrastructure, electricity distribution systems and waste management services across major urban centres, just as he said that such would enable the people monitor the implementation as well as hold the government accountable for results.
In a statement issued on Thursday, Obi explained that the approval of a $1 billion facility for South Africa by the New Development Bank demonstrated how governments can borrow responsibly while keeping citizens fully informed about the purpose and expected outcomes of such loans.
According to him, borrowing itself is not a problem, but countries across the world routinely rely on debt financing to fund critical development projects and bridge infrastructure gaps. However, he argued that every borrowing decision must be accompanied by transparency, accountability and measurable benefits for the people.
“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 stated.
Drawing a contrast with Nigeria’s current debt profile, Obi who expressed concern over what he described as the lack of clarity surrounding the utilization of borrowed funds despite the country’s rapidly expanding debt stock, said that Nigeria’s public debt has climbed from about ₦87 trillion in 2023 to nearly ₦200 trillion within a relatively short period, yet many Nigerians remain uncertain about the specific projects, infrastructure investments or social programmes that justify the scale of the borrowing.
He said that every loan obtained in the name of Nigerians should be tied to productive investments capable of generating employment, stimulating economic growth, reducing poverty and improving living standards, adding that governments owe citizens a duty to explain what was borrowed, where the funds were invested and what tangible outcomes have been achieved.
The NDC presidential Candidate, who noted that accountability in public finance has become even more important as millions of Nigerians grapple with rising inflation, worsening economic hardship, unemployment, insecurity and declining purchasing power, however, warned that continued borrowing without visible developmental impact could leave future generations saddled with enormous financial obligations while offering little relief to the challenges confronting citizens today.
Obi called for stricter fiscal discipline, greater transparency in public expenditure and stronger oversight of borrowing decisions, just as he said that the true measure of any loan should be its capacity to improve the welfare of ordinary Nigerians.
