Peter Obi raises alarm over Nigeria’s economic decline, as India becomes 4th largest global economy

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By Madu Obi

The former Labour Party presidential candidate, Mr. Peter Obi, has reacted to the recent report that India has overtaken Japan to become the world’s fourth-largest economy by nominal Gross Domestic Product, GDP, using the milestone to raise alarm over Nigeria’s worsening economic fortunes.

According to estimates by the International Monetary Fund (IMF) for 2025, India’s nominal GDP is projected at about $4.187 trillion, narrowly surpassing Japan’s $4.186 trillion.

Obi said India is now setting its sights on overtaking Germany, whose economy stands at approximately $4.74 trillion, to become the world’s third-largest economy.

Describing India’s progress as remarkable, Obi said the development underscores Nigeria’s failure to translate its resources into sustainable economic growth, especially when viewed against the two countries’ comparable trajectories in the past.

Citing World Bank data, Obi noted: "At the end of 2007, during the administration of former President Olusegun Obasanjo, Nigeria’s nominal GDP per capita stood at about $1,816, significantly higher than India’s $1,022.

By 2015, at the end of the Yar’Adua/Jonathan era, Nigeria still maintained an advantage, with GDP per capita of around $2,586, compared to India’s $1,584.

However, IMF World Economic Outlook projections show a dramatic reversal by 2025. India’s nominal GDP per capita is expected to rise to about $2,878, while Nigeria’s is projected to fall sharply to around $807."

Obi described the figures as troubling, particularly in the light of what, he said, were significant subsidy savings, substantial revenue growth, and unprecedented levels of borrowing.

He disclosed that Nigeria’s combined revenue between 2023 and 2025 is estimated at about ₦200 trillion (approximately $135 billion), yet critical sectors such as healthcare, education, and poverty reduction have seen no meaningful improvement.

According to him, poverty, insecurity, and the collapse of public services have worsened, while businesses—especially small and medium enterprises—are shutting down daily due to lack of support and high operating costs.

He also lamented erratic and expensive electricity, alongside the rising cost of rent, transportation, and food, which he said are increasingly beyond the reach of ordinary Nigerians.

Obi renewed his call for national unity and a new leadership consensus built on competence, compassion, and character.

He stressed the need for a government that prioritizes citizens’ welfare, invests in healthcare, education, infrastructure, agriculture, and technology, and cuts waste while reducing the cost of governance.

He further emphasized transparency and accountability, saying Nigerians must be able to track national progress and hold public officials responsible.

Such an approach, he argued, would empower citizens economically, create jobs, support businesses, strengthen security, ensure reliable energy and food security, and restore trust in public institutions.

"Only through collective action, transparent governance, and visionary leadership can Nigeria close the widening gap with countries like India and reclaim its economic potential", Obi stated.

He also warned that other nations are already moving ahead, stressing that the time for Nigeria to act is now.