Peter Obi, the 2023 Labour Party presidential candidate, has once again voiced deep concern regarding the alarming pace of borrowing by President Tinubu’s administration, citing a growing lack of transparency and accountability. According to Obi, the Nigerian Senate’s recent approval of an additional $21 billion, €2.2 billion, and ¥15 billion in foreign loans for the 2025–2026 fiscal term brings Nigeria’s total debt stock dangerously close to the ₦200 trillion mark. In a detailed post on his verified X (formerly Twitter) handle, Obi broke down the country’s current fiscal standing, stating: “As of July 22, 2025, the Nigerian Senate approved external borrowings totaling $21 billion, €2.2 billion, and ¥15 billion. This is in addition to a ₦750.98 billion domestic bond issuance and a €65 million grant. With public debt already around ₦149.39 trillion by the first quarter of 2025, these new loans raise Nigeria’s debt burden by approximately ₦37.2 trillion—pushing the total to about ₦187 trillion. The concern now is that this figure could soar to ₦200 trillion before 2025 ends.” Obi further highlighted that Nigeria’s Gross Domestic Product (GDP) before recent rebasing stood at ₦269.2 trillion (about $180 billion). Comparing this to the approved borrowing, the administration has borrowed the equivalent of nearly 70% of that GDP. Even after GDP rebasing increased the figure to ₦372.8 trillion (about $243.7 billion), the country’s debt-to-GDP ratio remains dangerously high—around 50.16%, the worst in Nigeria’s history. Debt Rises While Development Declines Obi expressed grave concern over the country’s growing indebtedness with negligible improvement in critical sectors such as: He pointed out that despite year-on-year increases of ₦27.72 trillion and quarter-on-quarter rises of ₦4.72 trillion, there is little tangible development to justify the debt. “We’re amassing unsustainable debt at an exponential rate, but without visible outcomes. Education remains underfunded, healthcare remains inaccessible, and over 10,217 Nigerians have lost their lives with 672 villages destroyed between May 29, 2023 and May 29, 2025.” Security spending has ballooned from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025, yet insecurity remains rampant. Obi emphasized that 135,000 km out of 195,000 km of Nigerian roads remain unpaved and mostly unusable. In the power sector, the country is still generating less than 5,000 MW of electricity for over 200 million Nigerians—a glaring symbol of dysfunction. Human Development at a Standstill He further lamented that Nigeria ranks poorly in major Human Development Index (HDI) indicators. A staggering 133 million Nigerians (63%) are now classified as multi-dimensionally poor, according to recent national data. Meanwhile, Médecins Sans Frontières (MSF), also known as Doctors Without Borders, has raised an emergency alert over worsening child malnutrition in Northern Nigeria, specifically Katsina State, where hundreds of children have already died. “In a nation blessed with natural and human resources, it’s unacceptable that anyone should sleep hungry. Yet, leadership failure has entrenched widespread poverty.” Borrowing Without Impact: A National Crisis Obi maintained that borrowing can serve a productive purpose only when responsibly utilized for impactful and measurable development. He condemned the ongoing trend of taking loans without clarity or accountability: “This form of borrowing—detached from economic outcomes—is only mortgaging the future of Nigerian youths and generations unborn. Leaders must consider the long-term consequences of this reckless fiscal policy.” He called for a shift to disciplined and sustainable economic governance, urging the government to: Obi ended his statement with a call for visionary leadership: “We must end this economic recklessness. The time has come for a New Nigeria, one anchored on transparency, impact, and responsibility. Every naira borrowed should deliver measurable results that uplift our citizens. A New Nigeria is POssible.”
