Former Anambra State governor and presidential aspirant of the Nigeria Democratic Congress (NDC), Peter Obi, has criticised Nigeria’s lending system, saying banks in the country place excessive emphasis on collateral rather than competence and intellectual capacity.
Obi spoke on Friday while addressing members of the Nigerian community at the Spier Dialogue 2026 in Cape Town, South Africa, ahead of his participation in the pan-African governance forum.
Reflecting on his business experience in the United Kingdom, Obi said British banks granted him loans based largely on his educational background and credibility rather than physical assets.
“I lived in the UK, my brother. I did business in the UK. Very successful business. I went to the bank. I told them the schools I was from, Cambridge and Oxford, and they gave me money,” he said.
According to Obi, the banks assessed his intellectual value and business potential instead of demanding guarantees tied to family wealth or landed property.
“They didn’t ask me about my parents. They gave me this loan based on my intellectual capital, and I paid them back,” he added.
The former Labour Party presidential candidate argued that such opportunities are difficult to obtain in Nigeria because of stringent collateral conditions imposed by financial institutions.
“In my country, I wouldn’t get that type of loan. They would have asked me to go and bring my dead mother and father, their properties and all of that,” he said.
Obi used the experience to support his broader argument for institutional reforms and a governance system that encourages productivity, entrepreneurship and merit.
He also criticised what he described as the transactional approach to politics in Nigeria, insisting that governance should focus on building functional systems that improve citizens’ lives.
“People always believe that every politician is the same because they believe governance is all about transactions. What we want is people that will make the society work,” he stated.
Earlier, Obi had announced via his X account that he was in South Africa for the Spier Dialogue, which brings together leaders and stakeholders to discuss Africa’s future and global challenges.
According to him, discussions at the forum focused on governance, democracy, migration, urbanisation, economic inclusion and leadership across the continent.
“Africa’s future should not be characterised by poverty amid abundance or by division instead of development,” Obi wrote.
He called for a shift from consumption-driven economies to production-based development, urging African leaders to embrace competence, compassion and policies that deliver measurable progress for citizens.