Former presidential candidate of the Labour Party, Peter Obi, has issued a stark warning about Nigeria’s escalating public debt, describing the current borrowing trend as “reckless” and a threat to the country’s economic stability and future.
In a statement on Tuesday, Obi expressed deep concern over the recent approval by the Nigerian Senate of fresh external borrowings amounting to $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle.
Additionally, a ₦750.98 billion domestic bond issuance and a €65 million grant were approved—figures that, when combined with existing liabilities, have pushed the country’s debt profile to alarming heights.
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“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 ₦750.98 billion domestic bond issuance and a €65 million grant,” Obi noted.
“With an already existing public debt of about ₦149.39 trillion as at the first quarter of 2025, adding the approved loans of about ₦37.2 trillion brings our current total debt to about ₦187 trillion, with concerns that our debt might likely be over ₦200 trillion by the end of 2025.”
Obi, a former Anambra State governor and strong proponent of fiscal discipline, emphasized that the scale of the debt was unprecedented in Nigeria’s history, especially when weighed against the country’s Gross Domestic Product (GDP).
“As our GDP before rebasing was about ₦269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of our previous GDP,” he said. “Even after the rebasing, which pushed our GDP to about ₦372.8 trillion (about $243.7 billion), 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.”
The former LP flagbearer decried the lack of tangible impact from the borrowings, especially in vital sectors such as education, healthcare, security, and infrastructure.”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,” he stated.
Obi lamented the dire state of the country’s social indicators, pointing out that Nigeria still ranks low globally in human development metrics. He cited a range of disturbing statistics, including a surge in insecurity and continued neglect of the power and health sectors.
“Security of lives and property has deteriorated with over 10,217 people killed and 672 villages sacked between May 29, 2023, and May 29, 2025, even when security spending has significantly increased from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025,” he explained.
“Infrastructure decay persists across the country, with about 135,000km of our 195,000km of roads remaining unpaved, largely unmotorable, and unusable.
“On the power sector, Obi observed: “It is the same depressing situation in almost all sectors of the economy, with the power sector an unquestionable example, with less than 5,000 MW supplied for over 200 million Nigerians.”
The LP leader also drew attention to the human cost of poor governance and borrowing without measurable impact. He referenced the alarming rise in multidimensional poverty and worsening malnutrition in northern Nigeria, particularly in Katsina State.
“Today, over two years after the present government took over and with all the humongous borrowing, we are still confronted with negative reports of worsening poverty with about 133 million (63%) Nigerians classified as multi-dimensionally poor,” Obi said.
“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.”
He called for a shift away from what he described as irresponsible borrowing habits that jeopardize the nation’s future.”Borrowing is not inherently bad if it is sustainable and tied to productive investments with measurable outcomes,” Obi asserted.
“Unfortunately, this current pattern of borrowing without accountability, without transparency, and without transformational impact is simply mortgaging the future of our children.”
He urged the government to consider the long-term consequences of its fiscal decisions.”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,” he said.
As a way forward, Obi called for a return to fiscal discipline, prudent economic management, and targeted investments in human capital and productivity.
“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,” he warned.
In a final call to action, Obi declared: “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.”
His remarks are likely to resonate with many Nigerians growing increasingly disillusioned with economic stagnation and the burden of rising debt amid harsh living conditions.
