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A fresh war of words has erupted between former presidential candidate, Peter Obi, and the Presidency following his criticism of Nigeria’s borrowing practices.
Obi had, in a post shared on his X handle, described borrowing for consumption as both “leprosy” and a “killer cancer,” warning that such fiscal practices could undermine the country’s economic future.
“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 stated.
The former Anambra State governor argued that debt not tied to measurable economic value such as job creation, growth, or improved living standards poses a serious risk to national development. He further referenced provisions of the Fiscal Responsibility Act 2007, insisting that government borrowing must be backed by clear cost-benefit analysis and productive intent.
Obi also raised concerns over Nigeria’s rising debt servicing obligations, noting that excessive borrowing without corresponding economic returns could constrain the country’s ability to invest in critical sectors.
“A responsible government does not merely defend borrowing; it explains it, justifies it, and most importantly, ensures it works for the people,” he added.
However, his remarks drew a swift response from presidential aide, Bayo Onanuga, who accused him of engaging in what he described as “demagoguery.”
“Mr Peter Obi, you have come again with your demagoguery. What point are you trying to make about borrowing?” Onanuga said.
Defending the administration of President Bola Ahmed Tinubu, the presidential spokesman maintained that borrowing is a standard practice among sovereign nations and should not be portrayed negatively.
“Every sovereign nation borrows, and as President Tinubu rightly said, borrowing is not leprosy,” he stated.
Onanuga further argued that the current administration is borrowing to finance critical infrastructure projects rather than for consumption, adding that Nigeria’s ability to attract lenders reflects its creditworthiness.
“The fact that we are receiving funds and have willing lenders shows that our country is credible and capable of repaying,” he said.
He also urged Obi to adopt a more rational and less emotional approach in his public commentary on national issues.
“As a politician, you need to rise above the pedestrian level and address issues of the day with rational argument, not emotional reactions on the streets and Twittersphere,” Onanuga added.
The exchange has sparked debate among economists and political observers, with differing views on the sustainability of Nigeria’s borrowing strategy and the transparency of its application.
Analysts note that while borrowing remains a common fiscal tool globally, concerns over debt sustainability, utilisation, and accountability continue to dominate discussions around Nigeria’s economic management.
