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Peter Obi to Tinubu: Stop Irresponsible Borrowing Lacking Transparency

Published by Tope Fakinlede on July 29th, 2025.

Peter Obi to Tinubu: Stop Irresponsible Borrowing Lacking Transparency

On July 22, 2025, the Nigerian Senate sanctioned an additional round of foreign borrowing—$21 billion, €2.2 billion, and ¥15 billion—for the 2025–2026 fiscal period. In addition, it gave the green light for the issuance of N750.98 billion in domestic bonds and accepted a €65 million grant. As of Q1 2025, Nigeria’s public debt already stood at around N149.39 trillion. With these new borrowings—amounting to approximately N37.2 trillion—the total debt load now rises to nearly N187 trillion. Projections suggest this figure could exceed N200 trillion by year’s end.

Before the latest GDP rebasing, Nigeria’s economy was valued at roughly N269.2 trillion (around $180 billion), meaning that debt had climbed to about 70% of GDP. Even after rebasing lifted the GDP to N372.8 trillion (approximately $243.7 billion), the debt still represents over 50% of the national output—a record-high debt-to-GDP ratio for the country.

What’s more alarming is the pace of debt accumulation: a year-on-year increase of N27.72 trillion, and N4.72 trillion in just the last quarter. This steep rise is happening without tangible improvements in essential sectors—education, healthcare, electricity, public safety, and poverty reduction remain deeply neglected.

Nigeria continues to rank poorly across key human development indices. Education funding is inadequate, and standards are falling. Healthcare is still beyond the reach of many, especially the poor. Despite rising security budgets—from N2.98 trillion in 2023 to N4.91 trillion in 2025—violence persists. Between May 29, 2023, and May 29, 2025, over 10,217 Nigerians lost their lives and 672 communities were displaced.

Basic infrastructure remains in shambles. Of the country’s 195,000 km of roads, roughly 135,000 km are either unpaved or in disrepair. The power sector is another glaring failure—barely 5,000 MW is available to serve more than 200 million citizens.

More than two years into the current administration, Nigeria still battles deepening poverty. An estimated 133 million Nigerians—63% of the population—are classified as multi-dimensionally poor. Unemployment continues to rise, and heartbreaking stories abound, such as the recent deaths of 652 children due to worsening malnutrition in the North.

Doctors Without Borders (MSF) recently issued an urgent warning about the malnutrition crisis, pointing to Katsina State as one of the hardest-hit regions. In a country blessed with vast human and natural resources, it is unacceptable that citizens still go to bed hungry. The root cause lies in chronic leadership failure.

Borrowing, in itself, is not the problem—when used responsibly, it can drive development. But what Nigeria faces today is a dangerous cycle of borrowing without oversight, without outcomes, and without a plan for future repayment. This approach mortgages the future of our youth and generations yet unborn.

It’s imperative that we return to prudent fiscal management. This includes slashing wasteful government spending, sealing financial leakages, investing in people, and fostering a production-driven economy. Reckless borrowing must end—especially when poverty is deepening and public confidence is eroding.

Nigeria urgently needs a new direction. A nation where leadership is accountable, development serves the people, and every naira borrowed delivers real, measurable progress. Only then can we achieve sustainable and inclusive growth.