Obi demands transparency in government borrowing, cites South Africa as model

Presidential candidate of the National Democratic Congress (NDC), Peter Obi, has called on the Federal Government to provide greater transparency and accountability in the management of public debt, arguing that Nigerians deserve clear explanations on how borrowed funds are being utilised.

In a statement posted on his Facebook page, Obi said borrowing is not inherently wrong, noting that countries across the world rely on loans to finance development projects.

However, he stressed that the real issue lies in how borrowed funds are deployed and whether citizens can see tangible benefits from such debts.

The former Anambra State governor pointed to South Africa’s recent $1 billion loan from the New Development Bank as an example of responsible borrowing, commending the country’s decision to publicly disclose the specific projects the funds would finance.

According to Obi, South African authorities clearly outlined that the loan would be used to upgrade water supply systems, modernise sanitation infrastructure, improve electricity distribution, and strengthen waste management services across major cities, including Johannesburg, Cape Town, and Durban.

“This is indeed what accountable borrowing should look like; the purpose is clear, the projects are identifiable, and the expected benefits to citizens are measurable,” Obi said.

He argued that such investments directly improve living standards, boost productivity, and stimulate economic growth.

Obi, however, expressed concern over Nigeria’s rising debt profile, claiming that the country’s public debt had increased from about ₦87 trillion in 2023 to nearly ₦200 trillion under the current administration.

Despite the sharp increase, he said Nigerians have not been given sufficient details on how the borrowed funds are being invested in critical sectors such as education, healthcare, power, security, and infrastructure.

“Public debt has risen dramatically under the current administration, and its deployment is shrouded in secrecy from the people who will indeed repay the loan,” he stated.

The NDC presidential candidate maintained that every loan secured on behalf of Nigerians should be linked to specific and productive investments capable of creating jobs, reducing poverty, and improving citizens’ welfare.

He further argued that good governance requires governments to disclose what was borrowed, where the funds were invested, and the measurable outcomes achieved from such expenditures.

“The ordinary Nigerian should be able to see and feel the benefits of every debt incurred on their behalf,” Obi said.

He warned that with millions of Nigerians facing economic hardship, rising living costs, unemployment, and insecurity, fiscal discipline and prudent management of public resources had become imperative.

Obi added that every borrowing decision should be assessed against its impact on citizens’ lives, cautioning that failure to justify new debts could leave future generations burdened with obligations that deliver little or no benefit.

“If that question cannot be convincingly answered, then we risk merely transferring today’s burdens to future generations,” he said.