Peter Obi Criticizes Nigeria’s Rising Debt, Urges Fiscal Responsibility.

Former Labour Party presidential candidate, Peter Obi, has voiced strong concern over Nigeria’s escalating debt levels, warning that the current borrowing practices are unsustainable and lack transparency.

His statement came in response to the Senate’s recent approval on July 22, 2025, of additional external loans totaling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal year.

The Senate also approved a domestic bond issuance of ₦750.98 billion and a €65 million grant.

Obi pointed out that with Nigeria’s public debt already at ₦149.39 trillion as of Q1 2025, the newly approved loans valued at roughly ₦37.2 trillion would push total debt to about ₦187 trillion, potentially exceeding ₦200 trillion by the end of the year.

He highlighted that prior to the GDP rebasing, the country’s debt was equivalent to nearly 70% of its GDP, which stood at ₦269.2 trillion (about $180 billion). Even after rebasing, with GDP rising to ₦372.8 trillion (about $243.7 billion), the debt-to-GDP ratio would still reach 50.16% the highest in Nigeria’s history.

Obi expressed disappointment over the lack of tangible progress in key areas like education, healthcare, infrastructure, and security despite the borrowing surge. He cited data showing a year-on-year debt increase of ₦27.72 trillion and a quarter-on-quarter rise of ₦4.72 trillion.

He argued that the growing debt has not translated into better living conditions, noting that education remains underfunded, healthcare is inaccessible for many, and insecurity continues to worsen.

According to Obi, over 10,000 people have been killed and hundreds of villages destroyed between May 2023 and May 2025, despite a significant increase in security spending from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025.

He also lamented the state of Nigeria’s infrastructure, revealing that out of the 195,000 km road network, 135,000 km remain unpaved and unusable. In the power sector, he noted the persistent failure to generate more than 5,000 megawatts for a population of over 200 million.

Obi emphasized the worsening poverty crisis, pointing out that around 133 million Nigerians roughly 63% of the population are classified as multi-dimensionally poor.

He referenced a report by Médecins Sans Frontières (Doctors Without Borders) detailing severe malnutrition in Northern Nigeria, particularly in Katsina State, where 652 children reportedly died.

While Obi acknowledged that borrowing is not inherently wrong, he insisted it must be tied to productive projects with measurable outcomes.

He warned that the current borrowing trend without accountability or visible impact is endangering future generations.

He called for a shift towards responsible governance, urging cuts in the cost of government, elimination of waste, investment in human capital, and the development of a productive economy.

“It’s time to put an end to this fiscal recklessness,” he said. “We need a New Nigeria one built on responsible leadership, people-centered development, and measurable use of every borrowed or spent kobo.”