Obi warns of impending surge in Nigeria’s debt, condemns current administration’s borrowing spree
Peter Obi, a foremost opposition leader and Labour Party’s presidential candidate in the 2023 general election in Nigeria, has condemned the borrowing spree by the current administration in the country without accountability, and without a corresponding socio-economic impact.
He said this yesterday, in response to the current plan by the Nigerian government to borrow $21 billion, €2.2 billion and ¥15 billion, which was approved by the Senate last week, asserting that Nigeria’s debt now stands at N187 trillion, with concern about an impending surge to N200 trillion before the end of 2025.
Speaking on his X handle (formerly Twitter) Obi noted: “On July 22, 2025, the Nigerian Senate approved an additional $21 billion, €2.2 billion, ¥15 billion of external borrowing for the 2025–2026 fiscal cycle. It also approved a N750.98 billion domestic bond issuance and a €65 65million grant. With an already existing public debt of about N149.39 trillion as at the first quarter of 2025, adding the approved loans of about N37.2 trillion, brings our current total debt to about N187 trillion, with concerns that our debt might likely be over N200 trillion by the end of 2025.
“As our GDP before rebasing was about N269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of our previous GDP. Even after the rebasing, which pushed our GDP to about N372.8 trillion (about $243. 7billion), the government would have borrowed about 50.16 % of the new GDP (with the approved loans), the highest debt-to-GDP ratio in our history as a nation.”
Obi addded: “While the year-on-year increase is about N27.72 trillion and the quarter-on-quarter increase is about N4.72 trillion, we are accumulating very exponential levels of unsustainable debt with little or nothing to show for it in critical areas such as education, healthcare, electricity generation, security of lives and property and pulling people out of poverty.”
The former Governor of Anambra State said that despite the borrowings, the country still ranked low in all major human development indicators, such as education, healthcare, Security, Infrastructure and the power sector.
He noted that over two years since the advent of the current administration, no evidence of progress is visible, as the country is still confronted with negative reports of worsening poverty, asserting that about 133 million Nigerians, making up 63% of the population, are classified as multi-dimensionally poor, in addition to increasing unemployment rate and the death of 652 children due to malnutrition in Northern Nigeria.
“Médecins Sans Frontières (MSF), also known as Doctors Without Borders, has just sounded the alarm over an escalating malnutrition crisis in Northern Nigeria, with Katsina State emerging as one of the worst-hit areas.
“This is a country blessed with enormous resources, yet nobody should go to bed hungry. Still, a persistent deficiency in leadership has thrown the majority of our citizens into increasing multi-dimensional poverty,” Obi wrote.
He emphasized that borrowing is only advisable when tied to productive investments with measurable outcomes, stating that the current pattern of borrowing without accountability, transparency and transformational impact is a mortgage of the country’s future.
“The government should consider the inter-generational consequences of their unsustainable borrowings and show at least a minimum consideration and interest in the future of young and unborn Nigerians.
“We must return to a disciplined and prudent economic management culture, cutting the cost of governance, blocking leakages, investing in human capital, and building a productive economy. Nigeria cannot continue to borrow recklessly while poverty deepens and public trust erodes.
“It is time to stop this fiscal indiscipline. We must build a New Nigeria, where leadership is responsible, development is people-centred, and every kobo borrowed or spent delivers a measurable impact to achieve sustainable and inclusive development and growth,” he said.
