Former Labour Party presidential candidate, Peter Obi, has expressed deep concern over Nigeria’s rapidly growing debt, warning that the current pace of borrowing is unsustainable and risks mortgaging the country’s future.
Reacting to the Senate’s approval on July 22, 2025, of additional external loans totalling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle — alongside a N750.98 billion domestic bond issuance and a €65 million grant — Obi said Nigeria’s debt profile is spiralling out of control.
‘Debt could exceed N200 trillion by year-end’
With public debt already standing at N149.39 trillion in the first quarter of 2025, Obi estimated that the newly approved loans, valued at about N37.2 trillion, would push the total debt to N187 trillion. “By year-end, the figure could surpass N200 trillion,” he warned.
Obi said the debt-to-GDP ratio has reached record levels, noting:
“Before rebasing, our GDP was about N269.2 trillion ($180 billion). The government has borrowed nearly 70% of that amount. Even after rebasing to N372.8 trillion ($243.7 billion), the approved loans account for over 50% of GDP — the highest in our history.”
Little to show for borrowing
Obi lamented that the surge in borrowing has yielded minimal results in critical sectors. “We are accumulating unsustainable debt with little to show for it in education, healthcare, electricity, security, and poverty reduction,” he said.
He cited worsening insecurity despite increased spending, noting that “10,217 people have been killed and 672 villages sacked between May 2023 and May 2025, even as security expenditure rose from N2.98 trillion in 2023 to N4.91 trillion in 2025.”
The former Anambra governor also criticised the state of infrastructure, pointing out that 135,000 km of Nigeria’s 195,000 km road network remains unpaved, while the national grid continues to deliver less than 5,000 MW to a population of over 200 million.
Poverty and malnutrition crisis
Obi highlighted worsening poverty levels, citing statistics showing that 133 million Nigerians (63% of the population) are classified as multi-dimensionally poor. He referenced a report by Médecins Sans Frontières (Doctors Without Borders) that confirmed a growing malnutrition crisis in Northern Nigeria, with Katsina State particularly affected and 652 children reportedly dead.
“This is a country blessed with enormous resources, yet millions go hungry. Persistent leadership failures have thrown most of our citizens into grinding poverty,” he said.
‘Borrowing must be tied to growth’
Obi stressed that borrowing, while not inherently wrong, must be purposeful and productive.
“This current pattern of borrowing without accountability or visible impact is unacceptable. It is mortgaging the future of our children,” he stated.
He called on the government to adopt fiscal discipline:
“We must cut the cost of governance, block financial leakages, invest in human capital, and build a truly productive economy. Every kobo borrowed must deliver measurable results. It’s time to end fiscal recklessness and build a New Nigeria.”
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