Peter Obi has slammed the federal government’s rising debt profile, calling the latest wave of borrowing reckless.
He warned Nigeria’s debt may hit ₦200 trillion soon, with little to show in key sectors.
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Peter Obi has once again expressed worry over the federal government’s growing debt, calling the latest round of borrowing wasteful and harmful to the country’s future.
Obi’s comments follow the recent approval by the Nigerian Senate of a fresh external loan package totaling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle. Alongside this, lawmakers also approved the issuance of a N750.98 billion domestic bond and a €65 million grant.
In a statement posted on his verified X account, Obi estimated that the new loans would push Nigeria’s total debt from N149 trillion in the first quarter of 2025 to about N187 trillion, and possibly N200 trillion before the end of the year.
He noted that based on pre-rebased figures, the government had borrowed nearly 70% of Nigeria’s gross domestic product (GDP), and about 50% even after the recent GDP rebasing to N372.8 trillion. He described this as the highest debt-to-GDP ratio in the country’s history.
According to him, such heavy borrowing has failed to reflect in key sectors such as education, healthcare, infrastructure, and electricity. He pointed to the persistent underfunding of schools, poor access to medical services, and inadequate electricity supply, stressing that Nigeria still generates less than 5,000 megawatts for a population exceeding 200 million.
Obi also cited worsening insecurity, noting over 10,000 deaths and hundreds of villages destroyed between May 2023 and May 2025 despite a sharp increase in the security budget from N2.98 trillion to N4.91 trillion.
He referenced recent reports of severe malnutrition in Northern Nigeria, with aid agency Médecins Sans Frontières warning about increasing child mortality, especially in states like Katsina. He said these crises highlight leadership failures despite Nigeria’s vast resources.
Obi argued that borrowing is not inherently wrong, but insisted that funds must be channeled into productive ventures with measurable outcomes. He criticised the current administration for lacking transparency and accountability in managing public finances.
“The government should consider the long-term consequences of this borrowing pattern,” he said, calling for a shift towards more prudent economic management, reduced waste, and investment in human capital.
He concluded by urging leaders to focus on people-driven development, rebuild public trust, and ensure that every loan translates into real progress for the country.
