Former Nigerian presidential contender and Labour Party leader, Peter Obi, has sounded the alarm over the country’s rapidly ballooning debt profile, warning that reckless borrowing without tangible development outcomes is placing a crushing burden on future generations and deepening widespread poverty.

Obi’s concerns, posted on his verified X (formerly Twitter) handle, came just days after the Nigerian Senate approved a new round of borrowing. The Senate’s approval greenlit fresh external loans totaling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 budget period. Additionally, it endorsed the issuance of a ₦750.98 billion domestic bond and accepted a €65 million grant.

According to Obi, these new debts raise Nigeria’s total public debt burden to about ₦187 trillion and, if the borrowing trend continues unchecked, the figure could exceed ₦200 trillion by the end of 2025.

“With an already existing public debt of about ₦149.39 trillion as of Q1 2025, adding the newly approved loans of about ₦37.2 trillion brings our current total debt to approximately ₦187 trillion. We are likely heading toward a debt burden of over ₦200 trillion by year-end,” Obi cautioned.

Debt-to-GDP Ratio Hits Record High Despite GDP Rebasing

Obi also underscored that Nigeria’s debt-to-GDP ratio has hit unprecedented levels, signaling growing fiscal instability. Prior to a recent GDP rebasing, Nigeria’s GDP stood at ₦269.2 trillion (approximately $180 billion), meaning the country’s debt level equated to nearly 70% of its GDP.

Although the National Bureau of Statistics recently revised the GDP upward to ₦372.8 trillion (roughly $243.7 billion), the debt-to-GDP ratio remains deeply concerning at 50.16%—the highest in the nation’s history.

Obi pointed out that this mounting debt comes with little evidence of meaningful investment in essential sectors such as healthcare, education, power supply, and national security.

“We are accumulating exponential levels of unsustainable debt with little or nothing to show for it in critical areas like education, healthcare, electricity generation, and security,” he said.

Huge Spending on Security, Yet Insecurity Persists

The former Anambra State governor criticized the government for pouring more funds into security without any corresponding improvement in safety or public confidence. According to Obi, the federal government increased security spending from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025. Yet insecurity remains pervasive.

He referenced staggering figures: over 10,217 Nigerians have lost their lives and more than 672 villages have been destroyed within the last two years alone. These statistics highlight the ongoing failure to achieve even basic national security objectives, despite significant budget allocations.

“Spending nearly ₦5 trillion on security without a visible reduction in violence shows there’s a fundamental problem in governance and implementation,” Obi said.

Crumbling Infrastructure and Energy Deficit

Obi further lamented the condition of Nigeria’s decaying infrastructure, noting that over 135,000 kilometers of Nigeria’s 195,000 km road network remain unpaved, exacerbating logistical challenges and impeding economic activity.

On energy, he pointed out the chronic underperformance of the electricity sector. Despite repeated government promises and international support, Nigeria’s electricity generation remains below 5,000 megawatts—far below the requirements of a country with a population exceeding 200 million.

“We are not even close to providing the basic energy needs required to power homes, hospitals, schools, or industries,” he emphasized.

Soaring Poverty and Malnutrition Amid Wasted Resources

Drawing attention to the deepening humanitarian crisis, Obi highlighted shocking statistics: 133 million Nigerians—around 63% of the population—are now classified as multi-dimensionally poor.

He cited a Médecins Sans Frontières (MSF) report revealing that 652 children had died from severe malnutrition in Northern Nigeria, with Katsina State among the hardest hit.

“This is a country richly blessed with natural and human resources. There is absolutely no justification for this level of suffering and malnutrition. Leadership failure is the root cause,” Obi asserted.

Borrowing Is Not the Enemy—Misuse Is

While Obi made it clear that borrowing itself is not inherently wrong, he stressed that such debts must be channelled into productive ventures that can stimulate the economy and improve citizens’ lives.

He criticized the federal government for accumulating debt without transparency, measurable outcomes, or any clear plan for repayment.

“Borrowing should be strategic, transparent, and linked to high-impact projects. Sadly, what we see today is a pattern of borrowing without accountability or transformational impact,” he lamented. “This is mortgaging the future of our children and unborn generations.”

A Call for Discipline, Accountability, and People-Centred Development

Obi concluded by urging the government to immediately adopt fiscal discipline, eliminate wasteful spending, and block systemic revenue leakages. He emphasized the importance of redirecting public funds toward human capital development and infrastructure with measurable results.

He called for a new vision of leadership that puts the welfare of Nigerians first.

“It is time to stop this fiscal indiscipline. We must build a new Nigeria where leadership is responsible, development is people-centered, and every kobo borrowed or spent delivers real impact,” Obi declared.

As Nigeria’s debt load continues to rise without matching improvements in social services, infrastructure, and national security, Obi’s remarks have reignited a broader debate about the sustainability of the country’s economic policies and the urgent need for a more accountable and transparent fiscal strategy.