Obi faults Tinubu as debt interest hits N7.7trn in six months

Former Anambra State Governor and NDC presidential candidate Peter Obi has criticised President Bola Tinubu’s administration over the Federal Government’s N7.7 trillion debt interest payments in the first half of 2026, arguing that rising government revenue has yet to translate into improved living standards for Nigerians.

Obi made the remarks in a post on X while reacting to a World Bank report titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.

According to figures cited by the former governor, the Federal Government spent N7.7 trillion on debt interest between January and June 2026, compared with total revenue of N6.2 trillion.

He said interest payments represented approximately 124.2 per cent of revenue during the period, exceeding total revenue by about N1.5 trillion.

Obi questioned how the country could sustain its debt obligations despite what he described as a substantial increase in government revenue since 2023.

“The World Bank noted that the Federal Government spent a whopping N7.7 trillion on debt interest payments alone in the first six months of 2026 from January to June,” he said.

He also expressed concern over an estimated N700 billion decline in capital expenditure during the first half of the year, arguing that interest payments were approximately 11 times higher than spending on capital projects.

The opposition politician attributed the situation to excessive borrowing, corruption and incompetence, allegations that have yet to be independently established by the figures cited.

Obi maintained that economic performance should be assessed not only through revenue growth, foreign reserves and gross domestic product but also through improvements in employment, poverty reduction and household welfare.

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“So-called ‘economic stability’ has not resulted in higher living standards, improved employment opportunities, and reduction of poverty and inequality across Nigeria,” he said.

He added that economic stability could not be established simply by increases in government revenue, stronger foreign reserves or GDP growth.

“The definitive measure of economic success is not the apparent stability of the economy on paper, but the quality of people’s lives,” Obi stated.

He urged the Federal Government to ensure that its economic reforms produce measurable benefits for Nigerians, particularly low-income households struggling with rising living costs and limited access to essential services.

The former governor also cited an estimated 140 million Nigerians living in multidimensional poverty and referred to a United Nations Development Programme report which he said indicated setbacks in poverty-reduction efforts.

His comments come amid concerns over the rising cost of servicing Nigeria’s public debt.

Previous reports based on Debt Management Office data indicated that debt-service expenditure reached approximately N16 trillion in 2025, up from N13.02 trillion in 2024.

Other analyses have linked additional debt-service costs to exchange-rate depreciation and higher domestic interest rates, highlighting the pressure that borrowing obligations can place on public finances.

Meanwhile, the World Bank has projected Nigeria’s economic growth at 4.3 per cent in 2026, compared with 4.0 per cent in 2025, with growth expected to reach 4.4 per cent annually in 2027 and 2028.

Obi argued that the improved growth outlook should not, on its own, be taken as evidence that Nigerians are better off.

He called on the Tinubu administration to reassess the impact of its economic policies and prioritise job creation, poverty reduction, infrastructure development and improvements in citizens’ purchasing power.

The Presidency’s response to Obi’s latest criticism was not included in the information available for this report.