Peter Obi Slams Reckless Borrowing as Nigeria’s Debt Nears N200 Trillion

Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, has once again criticized the Nigerian government over its mounting debt burden, describing the continued borrowing spree as reckless and unsustainable.

In a post shared via his X (formerly Twitter) handle, Obi condemned the Senate’s recent approval of another round of external loans totaling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle. Additionally, the Senate greenlit a ₦750.98 billion domestic bond and a €65 million grant. With Nigeria’s public debt already at approximately ₦149.39 trillion as of Q1 2025, the newly approved loans push the total debt to an estimated ₦187 trillion, raising fears it could exceed ₦200 trillion by year-end.

Obi explained that prior to GDP rebasing, Nigeria’s debt represented nearly 70% of its GDP of ₦269.2 trillion (about $180 billion). Even after rebasing to ₦372.8 trillion (roughly $243.7 billion), the debt-to-GDP ratio stands at over 50%, the highest in Nigeria’s history.

He expressed concern that despite the skyrocketing debt and increased government spending—particularly in sectors like security, which rose from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025—there has been little to no improvement in critical areas. He cited worsening statistics in healthcare, education, infrastructure, electricity, and security. Between May 2023 and May 2025, over 10,217 Nigerians were killed and 672 villages attacked, even as insecurity continues to plague the nation.

Obi also highlighted the worsening poverty crisis, noting that 133 million Nigerians (63% of the population) are now multi-dimensionally poor. He referenced a recent alarm by Médecins Sans Frontières (MSF) about a severe malnutrition crisis in Northern Nigeria, especially Katsina State, where 652 children have died.

Calling for fiscal discipline and responsible governance, Obi emphasized that borrowing, while not inherently bad, must be tied to productive and measurable outcomes. He urged the government to cut wasteful spending, close financial leakages, and invest in human capital.

“It is time to end this fiscal recklessness,” Obi stated. “We must build a New Nigeria—where leadership is accountable, development is people-focused, and every borrowed kobo delivers real impact.”