Former Labour Party presidential candidate Peter Obi has expressed deep concern over Nigeria’s escalating debt profile, warning that the current borrowing trend is unsustainable and lacks transparency.
Obi’s remarks followed the Senate’s recent approval of $21 billion, €2.2 billion, and ¥15 billion in foreign loans, alongside a N750.98 billion domestic bond and a €65 million grant for the 2025–2026 fiscal year. With public debt already at N149.39 trillion as of Q1 2025, he warned that the new loans—amounting to about N37.2 trillion—could push total debt to over N200 trillion by year-end.
In a post on X (formerly Twitter), Obi noted that the approved borrowings equate to nearly 70% of Nigeria’s pre-rebased GDP and over 50% of the rebased GDP, describing it as the highest debt-to-GDP ratio in the country’s history.
He criticized the government for incurring such large debts without visible progress in key sectors like education, healthcare, infrastructure, and security. Obi cited official figures showing a N27.72 trillion year-on-year debt increase and said the current economic direction has failed to alleviate widespread poverty and human suffering.
Between May 2023 and May 2025, over 10,000 people were killed and more than 670 villages attacked despite increased security spending, Obi said. He also lamented that over 135,000 kilometers of roads remain unpaved and that electricity supply remains inadequate, with less than 5,000 megawatts distributed to over 200 million Nigerians.
Citing Médecins Sans Frontières, Obi highlighted the worsening malnutrition crisis in Northern Nigeria, where over 650 children reportedly died recently, describing it as a failure of governance in a resource-rich nation.
Obi clarified that borrowing can be justified if it funds productive ventures with measurable outcomes. However, he condemned the current pattern as reckless and detrimental to future generations.
He urged the government to return to disciplined economic management by cutting waste, investing in human capital, and focusing on people-centred development.
