By Olatunbosun Obafemi
Former Anambra State Governor and Labour Party presidential candidate in the 2023 elections, Peter Obi, has issued a stern warning over Nigeria’s escalating debt profile, accusing the federal government led by President Bola Tinubu of reckless and unsustainable borrowing.
Obi’s statement follows the Nigerian Senate’s recent approval, on July 22, 2025, of new external loans amounting to $21 billion, €2.2 billion, and ¥15 billion. In addition, the Senate authorized a ₦750.98 billion domestic bond and accepted a €65 million grant, all intended to fund the 2025–2026 fiscal cycle.
With Nigeria’s public debt already standing at ₦149.39 trillion as of the first quarter of 2025, Obi argued that these new commitments, which total approximately ₦37.2 trillion, could raise the national debt to around ₦187 trillion. He expressed deep concern that the figure might surpass ₦200 trillion before the year ends, pushing the country toward its most alarming debt-to-GDP ratio in history.
Obi noted that based on Nigeria’s pre-rebasing GDP estimate of ₦269.2 trillion (approximately $180 billion), the country’s debt now represents nearly 70% of GDP. Even after a recent rebasing exercise that adjusted the GDP to ₦372.8 trillion (about $243.7 billion), the debt still amounts to over 50% of the new GDP—a figure he described as unprecedented and dangerous.
The former governor emphasized that borrowing is not inherently negative when used responsibly and tied to productive investments. However, he criticized the current administration’s borrowing strategy as lacking transparency, accountability, and measurable outcomes. “We are mortgaging the future of our children through reckless and unproductive borrowing,” Obi stated.
He urged the government to reassess its fiscal culture and adopt more sustainable practices. This includes cutting the cost of governance, plugging financial leakages, investing in human capital, and focusing on building a productive, inclusive economy. Obi warned that continuous borrowing without impact deepens poverty and undermines public trust.
Calling for a national reset, he concluded that leadership must become more responsible and people-centred. “Every kobo borrowed or spent should deliver measurable impact,” he said. “We must stop this fiscal indiscipline and build a New Nigeria where development is sustainable and inclusive.”
Obi’s warning reflects growing public anxiety about Nigeria’s financial future amid worsening socio-economic conditions.
