Peter Obi raises alarm over Nigeria debt crisis as loans push public debt near ₦200 trillion. He demands fiscal discipline, investment in people, and transparency
Nigeria debt crisis has reached an alarming threshold, according to former Anambra State Governor and 2023 Labour Party presidential candidate, Mr. Peter Obi, who strongly criticized the Federal Government’s recent borrowing spree.
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In a statement issued following the Senate’s July 22 approval of a new fiscal borrowing plan, Obi expressed deep concern over Nigeria’s spiraling debt burden.
The Senate approved $21 billion, €2.2 billion, ¥15 billion in external loans, and ₦750.98 billion in domestic bonds, raising fresh questions about sustainability.
With Nigeria’s public debt already at ₦149.39 trillion in Q1 2025, the new approvals could push the national debt to ₦187 trillion and potentially over ₦200 trillion by the end of the year.
Even after a recent GDP rebasing to ₦372.8 trillion (about $243.7 billion), Nigeria’s debt-to-GDP ratio now stands at 50.16% the highest in its history.
Obi warned that such levels are “exponential, unsustainable, and unjustifiable.”
“We are accumulating debt at a reckless pace, yet failing to deliver progress in education, healthcare, infrastructure, or security,” Obi said.
He backed his claims with sobering figures: over 10,217 people killed, 672 villages destroyed, and 135,000km of roads still unpaved between May 2023 and May 2025.
Citing the malnutrition crisis in Northern Nigeria, with 652 children reportedly dead in Katsina alone, and 133 million Nigerians living in multidimensional poverty, Obi labeled the current state of affairs a tragedy of leadership failure.
He emphasized that borrowing is not inherently wrong, but stressed that it must be tied to productive and accountable investments. “This borrowing pattern is mortgaging the future of our children,” he warned.
Calling for urgent reform, Obi urged leaders to cut the cost of governance, plug financial leakages, and invest massively in human capital.
“Nigeria cannot continue down this path. We must adopt a new ethos one rooted in transparency, responsibility, and results,” he concluded.
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“It’s time to build a New Nigeria where every kobo borrowed delivers measurable impact.”
