Former presidential candidate of Labour Party, Peter Obi has warned against Nigeria’s borrwing pattern noting that debt used for consumption rather than production poses a serious threat to the nation’s economic future.

In a statement on Wednesday addressed to the President, Bola Tinubu, Obi described such borrowing as both “leprosy” and “a killer cancer.”

According to him, borrowing without clear economic value, job creation, or measurable growth outcomes erodes national credibility and limits future development.

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“Borrowing for consumption slowly eats away at the health, reputation, and autonomy of a nation,” he stated.

Obi said that responsible economies borrow with discipline and purpose, ensuring that loans are tied to productive investments capable of generating returns and improving citizens’ welfare.

He referenced the Fiscal Responsibility Act 2007, noting that it mandates governments to clearly state the purpose of borrowing and provide a cost-benefit analysis demonstrating economic and social gains.

The former Anambra State governor, however, claimed that many of Nigeria’s recent borrowings fail to meet both legal and economic standards.

“The humongous borrowing so far does not show how the projects enhance the productive capacity of the nation or improve the welfare of citizens,” he said.

Obi further raised concerns about Nigeria’s rising debt servicing obligations, warning that the country’s high debt-service-to-revenue ratio is more critical than its debt-to-GDP ratio, as it constrains funding for key sectors.

He cautioned that using current revenue to service debts that do not generate future income creates a “double jeopardy” for the economy.

“A responsible government does not merely defend borrowing; it explains it, justifies it, and ensures it works for the people,” he added.