Peter Obi Slams Federal Government Over Unsustainable Borrowing and Rising National Debt

Former Labour Party presidential candidate, Peter Obi, has once again condemned the Federal Government’s growing appetite for borrowing, warning that Nigeria’s total debt could exceed N200 trillion by the end of 2025.

In a detailed statement posted to his official X account, Obi decried what he described as reckless, unsustainable borrowing without clear impact on national development.

“On July 22, 2025, the Nigerian Senate approved an additional $21 billion, €2.2 billion, and ¥15 billion in foreign loans, as well as a N750.98 billion domestic bond and €65 million grant,” Obi stated.
“This is on top of an existing debt of N149.39 trillion as of Q1 2025. The new approvals raise the total public debt to around N187 trillion, and it may well exceed N200 trillion by year-end.”

Obi emphasized that Nigeria's current borrowing practices are unsustainable, pointing to troubling debt-to-GDP metrics even after the country’s recent GDP rebasing.

“Before rebasing, our GDP stood at N269.2 trillion (approx. $180 billion), meaning we had borrowed nearly 70% of GDP. After rebasing to N372.8 trillion ($243.7 billion), debt still accounts for over 50.16% of GDP, the highest ratio in our history,” he explained.

Despite the surge in debt, Obi noted that most Nigerians are yet to see improvements in critical sectors like healthcare, education, infrastructure, and security.

“We're borrowing at exponential rates, but there's little to show. Education is underfunded, healthcare is inaccessible, and over 10,217 lives have been lost to insecurity between May 2023 and May 2025,” he said.

He added that despite increasing the security budget from N2.98 trillion in 2023 to N4.91 trillion in 2025, insecurity has only worsened, and 135,000 km out of 195,000 km of roads remain unpaved and largely unusable.

Obi pointed to staggering poverty statistics, warning that the government’s fiscal choices are deepening the suffering of ordinary Nigerians.

“Over 133 million people 63% of the population are now multi-dimensionally poor. In Northern Nigeria, 652 children have died as the malnutrition crisis worsens, according to Médecins Sans Frontières.”

He criticized the government for failing to prioritize people-centred development, saying, “We are blessed with enormous resources. No Nigerian should go to bed hungry.”

Obi stressed that borrowing itself isn't the problem rather, it's borrowing without transparency, accountability, or measurable outcomes.

“We are mortgaging the future of our children. It’s time to return to disciplined economic management, cut the cost of governance, and invest in human capital.”

He concluded with a call to action:

“We must build a New Nigeria, where leadership is responsible, development is people-centred, and every kobo borrowed delivers impact.
A New Nigeria is POssible.”