The 2023 Labour Party presidential candidate of the Labour Party, Peter Obi, has raised alarm over Nigeria’s ballooning debt profile, worsening insecurity, and deepening poverty under President Bola Tinubu’s administration.
He warned that the country is heading toward a full-blown fiscal and development crisis if left unchecked.
Speaking via a statement on Monday, Obi criticised the National Assembly’s recent approval of massive new external and domestic borrowings, despite what he called a “worrying lack of accountability, transparency, or tangible impact” on the lives of Nigerians.
“On July 22, 2025, the Senate approved additional borrowings of $21 billion, €2.2 billion, and ¥15 billion, along with a ₦750.98 billion domestic bond issuance and a €65 million grant. When added to our existing public debt of ₦149.39 trillion as of Q1 2025, we are now staring at a total debt burden of about ₦187 trillion,” Obi said.
He warned that Nigeria’s total debt could cross ₦200 trillion by the end of the year, while noting that the country’s GDP-to-debt ratio has reached historic highs.
“Before rebasing, our debt was equivalent to nearly 70% of our GDP. After rebasing—which pushed the GDP to ₦372.8 trillion (about $243.7 billion)—our debt still stands at over 50.16% of GDP, the highest in our history,” he added.
Despite this massive borrowing, Obi said Nigerians continue to suffer from deteriorating living conditions across key sectors.
The former Anambra State Governor argued that despite the ₦4.91 trillion budgeted for security in 2025—up from ₦2.98 trillion in 2023, security has not improved
“Between May 29, 2023, and May 29, 2025, over 10,217 people were killed, and 672 villages were sacked across the country. How do we explain this horrific outcome despite the trillions spent on security?” he asked.
Obi noted that the state of insecurity, especially in rural communities, continues to drive displacement, hunger, and poverty.
“It is disheartening that while our people are being slaughtered and driven from their homes, we keep approving loans without demanding results from those tasked with protecting lives and property.”
Obi also lamented the country’s worsening infrastructure and power challenges, saying Nigeria remains stuck in underdevelopment despite its resource wealth.
“About 135,000 km out of our 195,000 km road network remain unpaved, largely unmotorable, and unusable,” he said.
“And in 2025, we are still producing less than 5,000 MW of electricity for over 200 million citizens. That’s simply unacceptable.”
He decried the state of education and healthcare, describing both as “grossly underfunded and in decline”, while noting the rise in multidimensional poverty.
“Today, 133 million Nigerians, or 63% of the population, are classified as multi-dimensionally poor, with increasing unemployment and collapsing social safety nets.”
He cited a recent alert by Médecins Sans Frontières (Doctors Without Borders) about an escalating malnutrition crisis in Northern Nigeria, particularly Katsina State, where 652 children have reportedly died due to lack of adequate nutrition and medical care.
“This is a country blessed with enormous natural and human resources. Yet, we cannot feed our children. No one should go to bed hungry in a nation like Nigeria,” Obi stated.
Obi warned that the continued pattern of borrowing without measurable outcomes or investment in productive sectors is dangerous and “mortgaging the future of young and unborn Nigerians”.
“Borrowing is not inherently bad if it is tied to sustainable, productive projects with measurable outcomes. But what we are witnessing is reckless borrowing, without impact. This is fiscal indiscipline at its worst,” he said.
Calling for a return to “disciplined and prudent economic management,” Obi urged the government to reduce waste, block revenue leakages, invest in human capital, and focus on building a truly productive economy.
“Nigeria cannot continue on this path. We must stop borrowing recklessly while poverty deepens and public trust erodes.
“It is time to build a New Nigeria—where leadership is responsible, development is people-centred, and every kobo borrowed delivers measurable results.”
