Former Governor of Anambra State and Labour Party’s presidential candidate in the 2023 general election, Peter Obi, has issued a stark warning over Nigeria’s escalating debt burden, accusing the federal government leds by President Bola Ahmed Tinubu of jeopardizing the future of younger generations through reckless and unproductive borrowing.
His concerns followed the Nigerian Senate’s approval on July 22, 2025, of a massive new round of external and domestic borrowing:
- $21 billion (USD)
- €2.2 billion (EUR)
- ¥15 billion (YEN)
- ₦750.98 billion in local bond issuance
- €65 million as a grant
These new commitments come at a time when Nigeria’s public debt had already reached ₦149.39 trillion by the end of Q1 2025. According to Obi, the newly approved loans—adding roughly ₦37.2 trillion could push the total debt to an estimated ₦187 trillion, with a strong possibility of surpassing ₦200 trillion by the end of 2025.
Debt-to-GDP Ratio “Historically Dangerous”
Obi pointed out that the debt-to-GDP ratio is now dangerously high.
Before rebasing, Nigeria’s GDP stood at around ₦269.2 trillion (approx. $180 billion), meaning the country has now borrowed nearly 70% of its pre-rebasing GDP.
Following a rebasing that increased the GDP to ₦372.8 trillion (approx. $243.7 billion), Nigeria’s debt load after incorporating the new loans would equal about 50.16% of its rebased GDP, marking the highest debt-to-GDP ratio in the nation’s history.
“This trajectory is unsustainable,” Obi warned. “We are accumulating exponential debt with very little to show for it in key sectors like education, healthcare, power, and poverty reduction.”
Exponential Debt, Declining Human Indicators
Despite the increase in national debt, Obi said Nigeria continues to rank low across all human development indicators.
“Education remains underfunded and standards keep falling. Healthcare is still out of reach for millions of poor Nigerians,” he stated.
Obi cited alarming statistics on security and public safety:
- Over 10,217 people killed between May 29, 2023, and May 29, 2025
- 672 villages sacked during the same period
- Security spending jumped from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025, yet violence persists
Infrastructure Breakdown and Power Deficit
Infrastructure remains in disrepair, Obi lamented. Of the country’s 195,000 km of roads, approximately 135,000 km remain unpaved, making many routes unusable.
He also criticized the power sector, which continues to deliver less than 5,000 MW to over 200 million Nigerians, despite heavy public and private investment over the years.
Mounting Poverty and Unemployment
Obi emphasized that massive borrowing has done little to ease poverty:
- 133 million Nigerians (63%) are multi-dimensionally poor
- Unemployment remains high
- 652 children have reportedly died as Nigeria’s malnutrition crisis worsens, especially in the North
He cited a recent warning by Médecins Sans Frontières (Doctors Without Borders) on the urgent humanitarian crisis, saying it is unacceptable for a resource-rich nation to allow its people to “go to bed hungry.”
Borrowing Isn’t the Problem, “Irresponsible Borrowing” Is
Obi acknowledges that borrowing can be useful when done responsibly and transparently.
“Borrowing is not inherently bad if it’s tied to productive investments with measurable results. But borrowing without accountability or impact is simply mortgaging our children’s future.”
He urged the government to be mindful of the inter-generational consequences of excessive debt and called for a full reset of Nigeria’s fiscal culture.
Obi’s Call to Action
Peter Obi concluded with a strong message to Nigeria’s leaders:
“Cut the cost of governance, block leakages, invest in human capital, and build a productive economy. We cannot keep borrowing while poverty deepens and public trust crumbles. We must build a New Nigeria where leadership is accountable and every kobo borrowed delivers measurable impact.”
