By John Paul
The controversy over Nigeria’s rising debt profile took a new turn yesterday as the All Progressives Congress (APC), the Debt Management Office (DMO), and financial experts weighed in on the subject.
The Lagos State chapter of the APC dismissed Labour Party presidential candidate Peter Obi’s criticism of President Bola Tinubu’s borrowing policy, insisting that the loans are strategic and development-driven.
In a statement titled “Peter Obi’s Borrowing Hypocrisy: Physician, Heal Thyself”, the APC Publicity Secretary in Lagos, Seye Oladejo, accused Obi of double standards and argued that borrowing under Tinubu was tied to critical infrastructure, energy, and transportation.
“First, borrowing is not inherently reckless. What matters is purpose and prudence. Under President Bola Ahmed Tinubu, borrowing is strategic, tied to critical infrastructure, energy, transportation, and productive sectors. This is the globally accepted practice—even the most advanced economies borrow to fund growth,” Oladejo said.
He further claimed Obi lacked the moral authority to lecture anyone on prudence, recalling that as governor of Anambra State, he left behind “unpaid pensions, collapsing infrastructure, and poor human capital indices.”
Oladejo also accused the LP flag bearer of contradictions. “For someone who flew around the world in private jets during his campaign while sermonising about cutting costs, the contradictions are glaring,” he said, adding that Tinubu was implementing difficult reforms necessary for the economy.
“Subsidy removal, currency reforms, and targeted borrowing are difficult but inevitable measures to secure Nigeria’s future. This is leadership in action—not empty moralising,” he stressed.
While the APC defended government borrowing, the Debt Management Office cautioned the media against sensationalising debt figures, saying recent reports had misrepresented its presentation at the West Africa Association of Public Accounts Committees (WAAPAC).
“This is false and misleading. The presentation provided an overview of debt trends, challenges, and potential solutions affecting the West African sub-region as a whole, and not solely about Nigeria,” the DMO clarified in a statement.
It explained that Nigeria’s total debt stock includes both domestic and external debts of the federal and state governments as well as the Federal Capital Territory, and emphasised the need for accurate reporting.
Development economist, Prof. Ken Ife, urged the government to adhere strictly to the Fiscal Responsibility Act to ensure borrowing remains tied to growth. “We must grow our economy, and that means we must borrow to leverage, but there is no room for us to borrow to consume,” he said.
Financial expert Uche Uwaleke also weighed in, linking Nigeria’s rising debt to weak domestic resource mobilisation and reliance on oil revenues. While acknowledging that borrowing is often justified by the country’s infrastructure gap, he cautioned against unsustainable debt servicing levels.
“The implication is huge opportunity cost considering the fact that critical sectors requiring attention, such as education and health, are starved of funds,” he warned.