Obi Calls for Transparency in Nigeria’s Borrowing, Citing South Africa’s $1 bn Loan

By Henry Umoru

Peter Obi, the presidential candidate of the Nigeria Democratic Congress (NDC) ahead of the 2027 elections, has urged the Federal Government to urgently disclose how the country’s growing debt is being used. He cited South Africa’s recent $1 billion development loan as an example of transparent borrowing.

The former governor of Anambra State highlighted that the South African government publicly identified the projects the loan would fund, including upgrades to water supply networks, sanitation infrastructure, electricity distribution systems and waste‑management services in major urban centres. Obi said this approach allows citizens to monitor implementation and hold the government accountable.

In a statement released on Thursday, Obi explained that the New Development Bank’s approval of a $1 billion facility for South Africa demonstrated how governments can borrow responsibly while keeping citizens fully informed about the purpose and expected outcomes of such loans.

He argued that borrowing itself is not a problem; many countries rely on debt financing to support critical development projects and bridge infrastructure gaps. However, 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 said.

Contrasting this with Nigeria’s current debt profile, Obi expressed concern over the lack of clarity surrounding the use of borrowed funds, despite the country’s rapidly expanding debt stock. He noted that Nigeria’s public debt has risen from about ₦87 trillion in 2023 to nearly ₦200 trillion in a short period, yet many Nigerians remain uncertain about the specific projects, infrastructure investments or social programmes that justify the scale of the borrowing.

Obi said that every loan taken in the name of Nigerians should be tied to productive investments capable of generating employment, stimulating economic growth, reducing poverty and improving living standards. He added 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 noted that accountability in public finance has become even more important as millions of Nigerians face rising inflation, worsening economic hardship, unemployment, insecurity and declining purchasing power. He 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, emphasizing that the true measure of any loan should be its capacity to improve the welfare of ordinary Nigerians.

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