Former Labour Party presidential candidate, Peter Obi, has expressed deep concern over Nigeria’s rapidly growing debt, warning that the current borrowing trend is unsustainable and lacks accountability.
His remarks follow the Senate’s approval of new foreign loans—$21 billion, €2.2 billion, ¥15 billion—and a ₦750.98 billion domestic bond for the 2025–2026 budget. Nigeria’s total debt, already at ₦149.39 trillion in Q1 2025, could climb past ₦200 trillion by year-end.
“We’ve borrowed nearly 70% of our pre-rebased GDP and over 50% of our current GDP—the highest debt-to-GDP ratio in Nigeria’s history,” Obi said via X.
He noted a year-on-year debt increase of ₦27.72 trillion, yet little improvement in education, healthcare, electricity, or infrastructure. Despite rising security spending, insecurity has worsened, with over 10,000 lives lost and hundreds of villages attacked in two years.
Obi also highlighted that 135,000 km of roads remain unpaved, electricity supply stays below 5,000 MW, and poverty has worsened, affecting 133 million Nigerians. He referenced a malnutrition crisis in Northern Nigeria, where 652 children have died.
While Obi acknowledged that borrowing isn’t inherently wrong, he warned that Nigeria’s loans lack transparency and clear development outcomes.
“We are mortgaging our children’s future. Every kobo borrowed must deliver measurable impact,” he stressed.
He urged the government to adopt responsible fiscal management, cut waste, invest in human capital, and prioritize transparency.
“It’s time to build a New Nigeria—where leadership is responsible and development is people-focused.”
