Labour Party’s 2023 presidential candidate, Peter Obi, has raised fresh concerns about Nigeria’s ballooning debt profile, describing the N187 trillion debt stock as “unsustainable and dangerously mortgaging the future.” In a strongly worded post on his X (formerly Twitter) account on Tuesday, Obi warned that unless immediate action is taken, the nation’s debt could cross the N200 trillion mark by the end of 2025.
Obi’s statement follows the National Assembly’s recent approval of an additional $21 billion, €2.2 billion, and ¥15 billion in external borrowing for the 2025–2026 fiscal cycle. The Senate also greenlit the issuance of N750.98 billion in domestic bonds and accepted a €65 million grant, further expanding Nigeria’s already heavy borrowing burden.
The former Anambra State governor highlighted that Nigeria’s debt profile includes N149.39 trillion in public debt as of Q1 2025, along with previous loans totalling N37.2 trillion. Combined, this pushes the nation’s current debt to an estimated N187 trillion.
With the country’s rebased Gross Domestic Product (GDP) now standing at N372.8 trillion (about $243.7 billion), Obi said the debt-to-GDP ratio has reached an alarming 50.16%—the highest in Nigeria’s history. Prior to the rebasing, the GDP was pegged at N269.2 trillion ($180 billion), meaning the government had borrowed nearly 70% of the total economic output at the time.
“This trajectory is dangerous,” Obi wrote. “We are accumulating exponential levels of unsustainable debt with little to show for it in education, healthcare, power, or poverty alleviation.”
Obi lamented the absence of visible developmental impact, citing persistent underfunding in education and healthcare. He noted that security spending rose from N2.98 trillion in 2023 to N4.91 trillion in 2025, yet insecurity persists, with over 10,000 lives lost and 672 communities displaced between May 2023 and May 2025.
In terms of infrastructure, he pointed out that about 135,000km of Nigeria’s 195,000km road network remains unpaved. The power sector also lags behind, with national electricity output still below 5,000MW for a population exceeding 200 million.
Meanwhile, poverty levels remain alarming. Citing recent data, Obi revealed that 133 million Nigerians—approximately 63% of the population—are classified as multi-dimensionally poor. He also referenced a report by Médecins Sans Frontières (MSF), warning of an escalating child malnutrition crisis in Northern Nigeria, with 652 reported child deaths in Katsina State alone.
While acknowledging that borrowing is not inherently negative, Obi emphasized that loans must be linked to productive investments with measurable outcomes. He accused the current administration of lacking transparency and foresight in its borrowing strategy.
“This current pattern of borrowing without accountability, transparency, or transformational impact is simply mortgaging our future,” Obi said.
He called for a national return to fiscal discipline through cost-cutting, blocking revenue leakages, and prioritizing human capital development. He also urged leaders to consider the long-term, intergenerational consequences of reckless borrowing.
“Nigeria cannot continue on this path while public trust erodes and poverty deepens. It’s time for a reset—leadership must become responsible and people-centred.”
As Nigeria’s public debt edges dangerously close to N200 trillion, Peter Obi’s warning serves as a critical wake-up call. His call for reform, transparency, and sustainable fiscal management echoes the sentiments of millions of Nigerians grappling with economic hardship amid soaring inflation, rising unemployment, and diminishing public services.