A Photo file of Peter Obi

Former Labour Party presidential candidate Peter Obi has raised alarm over Nigeria’s rapidly increasing debt burden, warning that the country’s total public debt may surpass ₦200 trillion by the end of 2025.

In a statement released via his official X (formerly Twitter) handle, Obi criticised the Federal Government’s continued borrowing, describing it as fiscally reckless and unsustainable, with little to show in terms of tangible development outcomes.

His remarks come days after the Senate approved a new round of external and domestic borrowing, including $21 billion, €2.2 billion, ¥15 billion, a ₦750.98 billion domestic bond issuance, and a €65 million grant for the 2025–2026 fiscal period.

“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 total debt to approximately ₦187 trillion,” Obi said. “There are valid concerns that the figure may exceed ₦200 trillion by year-end.”

The former Anambra State governor decried the lack of visible progress in key sectors such as education, healthcare, power, and security, despite the ballooning debt levels.

He also highlighted disturbing statistics about Nigeria’s economic state, noting that the country’s debt-to-GDP ratio has now reached 50.16%, the highest in the nation’s history—even after the recent rebasing of GDP from ₦269.2 trillion to ₦372.8 trillion.

Obi further pointed out that insecurity remains a pressing concern despite significant budget allocations. Between 2023 and 2025, annual security expenditure increased from ₦2.98 trillion to ₦4.91 trillion, yet over 10,000 people have died, and 672 communities have been sacked in the past two years alone.

“What do we have to show for this mounting debt? Our roads remain largely unpaved, electricity generation is stagnant, and millions are trapped in multidimensional poverty,” Obi said.

He cited that only about 60,000 km of Nigeria’s 195,000 km road network are paved, while electricity generation remains under 5,000 megawatts for a population exceeding 200 million.

Obi also drew attention to the alarming levels of poverty and malnutrition in the country. Citing figures from the National Bureau of Statistics and Médecins Sans Frontières (MSF), he said 133 million Nigerians—about 63% of the population—are multidimensionally poor, and 652 children have died of malnutrition in Northern Nigeria, with Katsina State being one of the worst-hit areas.

“This is a country richly blessed with natural and human resources, yet children are dying of hunger. No citizen should go to bed hungry,” Obi lamented.

While acknowledging that borrowing is not inherently bad, Obi stressed that it must be tied to productive, high-impact projects with transparent and measurable outcomes. He accused the current administration of failing to apply borrowed funds responsibly.

“This pattern of borrowing without accountability is simply mortgaging the future of our children,” he said. “The government must demonstrate concern for the future of young and unborn Nigerians.”

He called for urgent economic reforms focused on reducing waste, plugging revenue leakages, and prioritising human capital development.

“It is time to end this fiscal indiscipline. We must build a New Nigeria—one where leadership is accountable, every borrowed kobo is justified, and development truly benefits the people,” Obi concluded.