Nigeria Borrows Mainly for Consumption, Not Growth — Peter Obi

Former presidential candidate of the Labour party, Peter Obi, has said Nigeria’s rising debt profile is troubling because borrowed funds are being used to finance consumption, inefficiency, and corruption rather than productive investments.

In a statement shared on his verified X account on Tuesday, Obi cited a recent report by the World Bank, which ranks Nigeria as the institution’s third-largest debtor with about $18.7 billion in obligations. He noted that Bangladesh tops the list with $23 billion.

Obi stressed that borrowing itself is not a problem, since many nations take loans to boost productivity and economic growth. The challenge, he argued, is when debts are used to fund wasteful or corrupt practices rather than investments that generate returns.

To illustrate his point, he compared Nigeria and Bangladesh over the past decade. In 2015, Bangladesh’s nominal GDP was roughly $195 billion with per-capita income slightly above $1,235. By 2024–2025, its economy had grown to between $460 billion and $500 billion, and per-capita income had risen to about $2,700.

Obi said this progress reflects productive use of borrowed funds in sectors such as manufacturing, textiles, energy, and human capital.

Nigeria, on the other hand, has moved in the opposite direction. Obi noted that Nigeria’s GDP in 2015 was around $490 billion, with per-capita income between $2,600 and $2,700.

Today, due to weak productivity, currency instability, structural inefficiencies, and corruption, GDP has fallen to below $250 billion, while per-capita income has dropped to between $850 and $1,000.

According to him, the contrast is clear: Bangladesh borrowed to expand production, exports, and incomes, while Nigeria borrowed but experienced economic contraction and declining living standards.

He concluded that the real problem is not how much a country borrows, but how the borrowed funds are used.
Obi expressed optimism that a new Nigeria is possible , one where loans are used to enhance productivity rather than consumption.