Former Labour Party presidential candidate, Peter Obi, has raised alarm over Nigeria’s growing debt burden, warning that the total public debt could surpass ₦200 trillion by the end of 2025.
Obi issued the warning in a statement on his official X handle, expressing grave concern over what he described as the country’s unsustainable fiscal path, which he said threatens the future of younger generations and exacerbates poverty.
“With an already existing public debt of about ₦149.39 trillion as at Q1 2025, adding the newly approved loans of about ₦37.2 trillion brings our current total debt to about ₦187 trillion, with concerns that it might exceed ₦200 trillion by year-end,” Obi stated.
His remarks follow the Senate’s recent approval of a new borrowing plan, which includes $21 billion, €2.2 billion, and ¥15 billion in external loans, along with a ₦750.98 billion domestic bond issuance and a €65 million grant for the 2025–2026 fiscal cycle.
Obi criticised the scale of borrowing, pointing out that it is not matched by investments in critical sectors such as healthcare, education, security, and power. He noted that Nigeria’s rebased GDP now stands at ₦372.8 trillion (approximately $243.7 billion), placing the country’s debt-to-GDP ratio at 50.16 percent—its highest ever.
He also highlighted that despite a rise in security spending from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025, the country continues to grapple with widespread insecurity. Over 10,000 deaths and the sacking of 672 villages were recorded in the past two years alone.
Infrastructure, according to Obi, is equally neglected, with only 60,000 kilometres of Nigeria’s 195,000 km road network paved. Power supply remains stagnant below 5,000 megawatts, serving a population of more than 200 million.
On the humanitarian front, Obi decried worsening poverty and malnutrition. “133 million Nigerians—about 63% of the population—are now classified as multi-dimensionally poor,” he said, citing a report by Médecins Sans Frontières that revealed 652 child deaths from malnutrition in Northern Nigeria, with Katsina State worst affected.
Obi stressed that borrowing is not inherently wrong if channeled into productive, transparent ventures. However, he accused the government of reckless fiscal conduct with little developmental impact.
“This pattern of borrowing without accountability and transformational impact is simply mortgaging the future of our children,” he warned. “The government should show minimum consideration for the future of young and unborn Nigerians.”
He called for a complete overhaul of Nigeria’s economic approach, urging the government to cut waste, block revenue leakages, and invest in human capital.
“It is time to stop this fiscal indiscipline,” Obi declared. “We must build a New Nigeria—where leadership is responsible, development is people-centred, and every kobo borrowed or spent delivers measurable impact.”
