Former Labour Party presidential candidate, Peter Obi, has raised alarm over what he described as the federal government’s reckless appetite for loans, warning that the trend reflects deeper issues of poor governance and troubling economic management.
Obi, in a statement on Friday, reacted to reports that the Tinubu-led administration plans to source roughly ₦20 trillion in fresh loans to fund the 2026 national budget.
The former Anambra State governor said the development is disturbing, especially coming at a time when Nigerians have been told that the government surpassed its 2025 revenue projections as early as August.
According to him, the mixed messaging from the presidency raises serious questions about transparency and accountability.
He argued that it is contradictory for a government claiming impressive revenue performance to still pursue borrowing on such an enormous scale.
Obi warned that the new borrowing plans reflect what he called fiscal recklessness and could push the country deeper into financial instability.
He noted that debt servicing is already expected to consume nearly half of Nigeria’s revenue, while the government’s borrowing needs have soared by more than 70 percent.
Rather than continuously accumulating debt without clear developmental outcomes, Obi urged the administration to prioritize production, stimulate exports, and grow value-creating sectors. He emphasized that strong institutions—not unchecked borrowing—build prosperous nations.
In his words: “Nigerians woke up today to the worrying news that the Federal Government intends to borrow about ₦20 trillion for the 2026 budget. This is happening when debt servicing is projected to swallow almost half of our national revenue.
Why are we discussing new trillions in loans when the 2025 budget has barely been touched? Where is the revenue that reportedly exceeded expectations since August?”
Obi added that it is unacceptable to continue borrowing funds that are not channeled into productive sectors but instead fuel recurrent expenditure and consumption.
He cautioned that Nigeria cannot continue mortgaging the future of its young population through what he described as thoughtless borrowing.
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According to him, no nation achieves prosperity by spending more than it produces.
He stressed: “We cannot claim rising revenues on one hand and defend unprecedented borrowing on the other. Governance must be rooted in truth, not propaganda. A nation cannot progress on the foundation of distorted figures, rising debt, shrinking production, and worsening hardship.”
Obi reaffirmed his belief that Nigeria can only grow through production-driven policies, export expansion, value creation, and strict accountability in public spending.
He concluded with his familiar message of hope: “A New Nigeria is POssible. -PO.“
