Peter Obi Condemns Tinubu Administration Over N187 Trillion Debt, Warns Borrowing May Exceed N200 Trillion Without Tangible Results
Peter Obi, the Labour Party’s presidential candidate in the 2023 general election, has once again criticised President Bola Tinubu’s administration over what he called its reckless and unaccountable borrowing practices.
Obi’s reaction followed the Senate’s recent approval of a massive new external borrowing package, which includes $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle.
He expressed concern that this new borrowing has pushed Nigeria’s total public debt to approximately N187 trillion, with projections that it could surpass N200 trillion before the end of the year.
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Posting on his X handle on Tuesday, Obi explained that Nigeria’s debt burden is becoming increasingly unsustainable. He said that with existing public debt already standing at N149.39 trillion in the first quarter of 2025, the newly approved loans—equivalent to about N37.2 trillion—have raised the total to around N187 trillion.
He further stated that Nigeria’s GDP before rebasing stood at N269.2 trillion (approximately $180 billion), meaning the country had borrowed nearly 70% of that value. Even after rebasing, which raised GDP to N372.8 trillion (about $243.7 billion), the debt-to-GDP ratio now stands at 50.16%, the highest in Nigeria’s history.
Obi warned that the country’s borrowing is rising at an alarming rate—N27.72 trillion year-on-year and N4.72 trillion quarter-on-quarter—without any significant improvement in key development sectors such as education, healthcare, electricity, security, or poverty alleviation.
According to Obi, despite the rise in security spending from N2.98 trillion in 2023 to N4.91 trillion in 2025, the nation remains plagued by insecurity, with over 10,217 people killed and 672 villages destroyed between May 2023 and May 2025.
He lamented the dire state of infrastructure, noting that out of Nigeria’s 195,000 km of roads, approximately 135,000 km remain unpaved, making them largely unusable. The power sector also continues to struggle, supplying less than 5,000 megawatts to over 200 million Nigerians.
Obi decried the worsening humanitarian crisis, pointing out that 133 million Nigerians (63% of the population) are now classified as multi-dimensionally poor. He highlighted recent reports that 652 children have died from malnutrition in Northern Nigeria, where the situation has become critical—particularly in Katsina State, as confirmed by Médecins Sans Frontières (MSF).
Calling Nigeria a nation blessed with resources but plagued by leadership failure, Obi argued that borrowing is not inherently wrong if it is used transparently and tied to productive outcomes. However, he said the current borrowing spree lacks accountability and is mortgaging the future of young and unborn Nigerians.
He urged the government to consider the long-term consequences of its fiscal decisions and adopt a more disciplined economic approach—reducing the cost of governance, plugging leakages, investing in human capital, and building a truly productive economy.
“It is time to end this fiscal recklessness,” Obi said. “We must build a New Nigeria where leadership is accountable, development is people-centred, and every kobo borrowed delivers measurable impact.”
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