Peter Obi, the Labour Party’s presidential candidate in the 2023 election, has once again spoken against the Federal Government’s heavy borrowing. He said the current administration keeps taking loans without being open about how the money is used.
He explained that the Senate recently approved new foreign loans for the 2025–2026 budget. These include $21 billion, €2.2 billion, and ¥15 billion. In addition to that, they approved a local bond of N750.98 billion and accepted a grant of €65 million. Obi warned that this new borrowing pushes Nigeria’s total debt to around N187 trillion, and it might rise to N200 trillion before the year ends.
Obi shared that before the country’s GDP was updated, it stood at about N269.2 trillion. After rebasing, it rose to N372.8 trillion. He noted that the current debt is equal to over half of the country’s new GDP, which he said is the worst debt-to-GDP ratio Nigeria has ever had.
He said that from year to year, Nigeria’s debt has gone up by N27.72 trillion, and from one quarter to the next, it has increased by N4.72 trillion. Yet, there are no major improvements in education, healthcare, electricity, security, or poverty reduction to show for it.
Obi stressed that Nigeria still performs poorly in key areas of human development. Schools don’t get enough funding, and healthcare is still out of reach for many, especially poor Nigerians. He said security is worse now, even though the government has been spending more on it. Between May 2023 and May 2025, over 10,000 people were killed, and over 600 villages were attacked.
He pointed out that despite the increase in government spending on security—from N2.98 trillion in 2023 to N4.91 trillion in 2025—there’s little improvement. Roads across the country are still in bad condition. Out of 195,000 km of roads in Nigeria, 135,000 km are not properly paved and cannot be used. The electricity supply is still low, with less than 5,000 megawatts available for over 200 million Nigerians.
Obi said that after more than two years in power, the current government has not helped to reduce poverty. About 133 million Nigerians are considered multi-dimensionally poor. Unemployment keeps increasing, and recent reports show that over 650 children have died due to hunger in Northern Nigeria.
He mentioned that Doctors Without Borders recently raised alarm over the rising malnutrition crisis in the North, especially in Katsina State. He said it’s sad that in a country with so many resources, people are still going to bed hungry.
Obi believes borrowing isn’t bad if it is done the right way. Loans should be used for projects that help the country grow and improve people’s lives. But the current borrowing trend lacks transparency and doesn’t produce any real development.
He urged the government to think about future generations. The current pattern of borrowing is putting a huge burden on young Nigerians and those yet to be born. He advised leaders to reduce waste, spend money wisely, and invest in people’s well-being.
In conclusion, Obi called on the government to stop wasting money through reckless borrowing. He said the country needs better leadership that puts the people first, makes wise decisions, and ensures every kobo is spent on something that benefits all Nigerian.
