Former Labour Party presidential candidate, Peter Obi, has once again cautioned the Federal Government over what he described as Nigeria’s reckless borrowing pattern, warning that the nation’s future generations risk inheriting “nothing but debt and despair” if urgent reforms are not implemented.

In a statement shared via his official X handle on Tuesday, Obi said he had received “numerous messages about the nation’s growing debt” while away on a short leave. He noted that even government officials had begun expressing concerns over the country’s rising debt profile, a development he has “consistently warned about.”

“Let me reiterate what I have consistently maintained: Nigeria cannot continue on this reckless path of borrowing without productivity. There’s nothing wrong with borrowing, what matters is ensuring that every loan translates into real, measurable productivity,” Obi stated.

The former governor of Anambra State lamented that the trillions of naira borrowed in recent years had not produced any visible impact in key sectors such as power, healthcare, infrastructure, and education.

“The more we borrow, the more poverty deepens, unemployment worsens, healthcare remains in shambles, our education system deteriorates, and more people are thrown into poverty,” he said.

Obi contrasted Nigeria’s situation with countries such as Indonesia, Vietnam, Egypt, and Bangladesh, which he said borrowed heavily but channelled funds into productive investments.

He also expressed worry that over 70 percent of government revenue is now spent servicing debts, leaving “almost nothing” for critical investments in education, health, and job creation.

Obi further criticised President Bola Tinubu’s fresh request for a $1.75 billion World Bank loan, despite recently announcing that government revenue targets for the year had been met.

“Just days ago, Mr. President announced to the country that we have met our revenue for the year, yet he is on the news again today, attempting to borrow another $1.75 billion World Bank loan. This fiscal indiscipline must end,” Obi declared.

Calling for urgent reforms, he urged the government to ensure that future borrowings are strictly tied to productive ventures that will generate measurable returns.

“If we do not act with urgency, our children and youths will inherit nothing but debt and despair with no sustainable future. A New Nigeria is POssible,” Obi concluded.