A sharp rhetorical exchange unfolded on Thursday between the Presidency and Peter Obi, a leading opposition figure and 2023 presidential candidate, regarding the federal government’s escalating debt profile.

The dispute was ignited by President Bola Ahmed Tinubu’s recent defense of his administration’s fiscal strategy, in which he asserted that "borrowing is not leprosy," suggesting that debt is a manageable and necessary tool for national development.

Obi Categorizes Debt as 'Economic Cancer'

Responding via his official X (formerly Twitter) handle, Peter Obi challenged the President’s analogy, arguing that the nature of Nigeria's borrowing has become a systemic threat.

"Mr. President, borrowing is not only leprosy, but a killer cancer when it is borrowed for consumption and not production," Obi stated. He contended that Nigeria’s primary economic ailment is "debt without productivity," asserting that disciplined nations only incur debt with clear repayment plans tied to productive investments.

Obi further cited the Fiscal Responsibility Act of 2007, which mandates that government borrowing must include a cost-benefit analysis detailing social and economic advantages.

"The humongous borrowing so far does not show how the projects for the loans enhance the productive capacity of the nation," Obi noted. "What matters is not debt-to-GDP as much as the debt-servicing ratio, because the latter constrains our capacity to finance human development."

The Presidency Rebuts 'Demagoguery'

The Presidency moved swiftly to dismiss Obi’s critique. Bayo Onanuga, Special Adviser to the President on Information and Strategy, accused Obi of engaging in "demagoguery" and urged him to adopt a more rational approach to national discourse.

Onanuga maintained that the Tinubu administration is strategically utilizing loans to bridge Nigeria’s infrastructure deficit rather than funding recurrent consumption.

Key points from the Presidency's rebuttal included:

• Credibility: Onanuga argued that the willingness of international lenders to provide funds proves Nigeria’s sovereign credibility and repayment capacity.

• Purpose: He emphasized that the funds are earmarked for critical infrastructure projects intended to stimulate long-term growth.

• Call for Rationality: The spokesman advised Obi to "rise above the pedestrian level" and move away from what he characterized as emotional social media reactions.

Comparative Perspectives on the Debt Debate

The exchange highlights the deepening divide over Nigeria’s fiscal policy, as the nation continues to navigate high inflation and a challenging debt-servicing environment.