Peter Obi, the Labour Party’s presidential candidate in the 2023 election, has voiced strong criticism over the federal government’s recent surge in borrowing, warning that the nation is heading toward an unsustainable financial trajectory. Reacting after the Senate’s approval of an additional $21 billion, €2.2 billion, and ¥15 billion in foreign loans for the 2025–2026 fiscal period, Obi insisted that the country’s debt position now stands at an alarming N187 trillion. He noted with apprehension, “Our debt may surpass N200 trillion by year’s end.”
Okay.ng reports that Obi’s remarks, shared via his X handle, highlighted the growing public concern about Nigeria’s fiscal future. He explained, “As our GDP before rebasing stood at about N269.2 trillion (roughly $180 billion), our government has now borrowed almost 70% of our previous GDP. Post-rebasing, with GDP at N372.8 trillion (about $243.7 billion), our debt equals over half of the economy’s value—a historic high for Nigeria.”
Obi lamented the minimal improvements visible in public services despite “exponential” debt increases. “Critical sectors like education, healthcare, electricity, and poverty alleviation show little to no improvement despite the mounting debt,” he asserted. He further cited distressing statistics: “Security remains dire, with over 10,217 lives lost and 672 villages displaced between May 2023 and May 2025. Despite an increase in security spending from N2.98 trillion to N4.91 trillion, insecurity persists.”
He highlighted other structural challenges, including 135,000km of unpaved, barely motorable roads and a persistent electricity supply issue with less than 5,000MW for over 200 million citizens. Obi noted Nigeria ranks low on global development indicators, with over 133 million citizens classified as multi-dimensionally poor and a worsening malnutrition crisis, especially in northern states such as Katsina.
Calling for a paradigm shift, Obi stated, “Borrowing is not inherently bad when it drives productive investments. However, Nigeria’s current borrowing pattern lacks accountability and transparency, mortgaging the future of the next generation.”
He called for a “return to disciplined, prudent economic management and an end to fiscal recklessness” to restore public trust and foster inclusive growth.
