Former presidential candidate, Peter Obi, has expressed deep concern over Nigeria’s growing debt profile and declining economic performance, warning that borrowing without productivity-driven growth is pushing the country toward deeper financial distress.
In a post shared on X (formerly Twitter), Obi referenced recent findings by the World Bank, which reportedly placed Nigeria among its top debtors globally.
“Recent World Bank reports indicate that Nigeria is now its number 3 debtor, with obligations estimated at roughly $18.7 billion. Bangladesh is the number one with $23 billion,” Obi stated.
He stressed that borrowing in itself is not the problem, noting that many nations rely on loans to stimulate development.
“I continue to emphasis that there’s nothing inherently wrong with borrowing. Nations borrow to improve productivity and stimulate growth. Debt becomes a problem only when it finances consumption, inefficiency, or corruption rather than investment as is our own case,” he said.
*Bangladesh’s Growth vs Nigeria’s Decline*
To illustrate his point, Obi compared Nigeria’s economic performance with that of Bangladesh over the past decade.
According to him, around 2015, Bangladesh’s nominal Gross Domestic Product (GDP) stood at approximately $195 billion, with per-capita income slightly above $1,235. By 2024–2025, the country’s economy had grown to between $460 billion and $500 billion, while per-capita income rose to about $2,700.
“In a decade, Bangladesh more than doubled the size of its economy, lifted incomes, and strengthened its export base – evidence that borrowed resources were largely channelled into productive sectors such as manufacturing, textiles, energy, and human capital,” Obi noted.
He added that Bangladesh’s progress reflected deliberate investments in productive sectors that expanded exports and created jobs.
*Nigeria’s Shrinking Economy*
In contrast, Obi said Nigeria has experienced economic decline despite years of heavy borrowing.
“In 2015, Nigeria’s GDP was about $490 billion, with per-capita income around $2,600–2,700. Today, due to weak productivity growth, currency instability, structural inefficiencies, and monumental corruption, Nigeria’s GDP is below about $250 billion, with a per-capita income of $850-1000,” he wrote.
He lamented that rather than expanding, Nigeria’s economy has “effectively contracted,” leading to declining living standards for millions of citizens.
Drawing lessons from both countries, Obi argued that the key issue is not how much a country borrows, but how the borrowed funds are used.
“The contrast is instructive. One country borrowed and expanded production, exports, and incomes. The other borrowed but saw declining economic strength and living standards. This suggests that the real issue is not the size of borrowing, but the use of borrowed funds,” he explained.
According to him, loans invested in infrastructure, industry, and human development can drive sustainable growth, while those tied to waste and corruption only deepen stagnation.
“Debt tied to infrastructure, industry, and human development fuels growth. Debt tied to consumption, leakages, and corruption deepens stagnation,” Obi stated.
Concluding his message, the former Anambra State governor called for a fundamental shift in Nigeria’s economic management and borrowing culture.
“A new Nigeria where loans, if taken, will translate into productivity instead of consumption is very much POssible. -PO,” he wrote.
His remarks have since sparked renewed debate on social media and among economic analysts, with many Nigerians calling for greater transparency, accountability, and productivity in the management of public funds.