Peter Obi raises alarm over Nigeria’s soaring N187trn debt

Former presidential candidate Peter Obi has voiced strong concern over Nigeria’s ballooning debt profile, warning that the nation is on a perilous fiscal path that threatens both current livelihoods and the economic future of unborn generations.

In a detailed statement shared via his official X (formerly Twitter) handle, Obi criticized the National Assembly’s recent approval of a fresh wave of external and domestic borrowing, which he says has pushed Nigeria’s public debt to an estimated N187 trillion, with projections indicating it could exceed N200 trillion by the end of 2025.

“With an already existing public debt of about N149.39 trillion as of Q1 2025, the newly approved loans—totalling about N37.2 trillion—bring the current debt stock to approximately N187 trillion,” Obi stated. “This reckless accumulation of debt is unsustainable and unjustifiable.”

According to Obi, the latest borrowings include $21 billion, €2.2 billion, ¥15 billion, and a N750.98 billion domestic bond issuance, alongside a €65 million grant.

While these inflows significantly expand the country’s fiscal capacity on paper, the former Anambra State governor noted that core sectors such as education, healthcare, electricity, and security show little or no visible improvement.

He criticized the government’s lack of accountability, noting that borrowing, in itself, is not the issue—rather, it is the lack of transformational, measurable outcomes from the funds obtained.

“We are taking loans without any clear development return. No improvement in infrastructure, no boost in productivity, no serious attempt to enhance human capital. This is fiscal irresponsibility at its peak.”

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Obi also pointed to troubling debt sustainability metrics, highlighting that before Nigeria’s GDP was rebased in 2025, the country’s debt-to-GDP ratio stood at nearly 70%. After rebasing, Nigeria’s GDP now stands at approximately ₦372.8 trillion (around $243.7 billion), bringing the debt ratio down to 50.16%—still the highest in the country’s history.

“Even with the revised GDP figure, Nigeria’s debt-to-GDP ratio is dangerously high and signals rising financial vulnerability,” Obi said.

Obi also underscored Nigeria’s growing poverty crisis, citing data indicating that 133 million Nigerians (63% of the population) are now multi-dimensionally poor. He referenced a recent report by Médecins Sans Frontières (MSF) that revealed 652 child deaths due to malnutrition in Northern Nigeria, especially in Katsina State.

“In a nation blessed with vast human and natural resources, no child should die of hunger. It is a failure of leadership and misplaced priorities,” he said.

While acknowledging that borrowing is a common practice among nations, Obi stressed that loans must be tied to high-impact, transparent projects that uplift people and grow the economy.

“Borrowing should be strategic, not reckless. We are not only spending without returns but also mortgaging our children’s future,” Obi warned.

“We must stop this cycle of fiscal indiscipline,” Obi stated. “A New Nigeria is possible—one that is responsibly governed, development-focused, and committed to building a better life for every citizen.”