Peter Obi Condemns New $21 Billion Loan as Nigeria’s Debt Climbs to N187 Trillion
Tinubu Administration Approves New Foreign and Domestic Loans
Labour Party’s presidential candidate in the 2023 election, Peter Obi, has again decried the relentless borrowing by the Tinubu-led administration, warning of grave long-term consequences for Nigeria’s future.
On July 22, 2025, the Nigerian Senate approved another round of external borrowing amounting to $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle. Additionally, it sanctioned a N750.98 billion domestic bond issuance and accepted a €65 million grant.
Obi, via a post on his verified X (formerly Twitter) handle, described the borrowing trend as “reckless and unsustainable,” stating that Nigeria’s total public debt has now ballooned to N187 trillion, up from N149.39 trillion in Q1 2025.
Debt-to-GDP Ratio Now At Record High
Peter Obi provided a breakdown of the debt-to-GDP implications:
Pre-rebasing GDP: ~N269.2 trillion ($180 billion)
Newly rebased GDP: ~N372.8 trillion ($243.7 billion)
Debt-to-GDP ratio: Now 50.16%, the highest in Nigeria’s history
“The government has borrowed nearly 70% of our previous GDP and now about 50% of our current GDP,” Obi stated. “Yet, we see no meaningful improvements in education, healthcare, infrastructure, or electricity.”
Obi Slams Lack of Impact Despite Massive Borrowing
Obi criticized the government’s failure to translate these massive borrowings into tangible development. He pointed out that:
Education remains underfunded, with deteriorating standards.
Healthcare is inaccessible to millions, especially the poor.
Security is worsening, with over 10,217 people killed and 672 villages sacked between May 2023 and May 2025.
Security budget increased from N2.98 trillion in 2023 to N4.91 trillion in 2025, yet insecurity persists.
Roads remain dilapidated, with 135,000 km of the 195,000 km still unpaved and unusable.
Electricity output remains below 5,000MW for over 200 million Nigerians.
A Nation in Crisis: Poverty, Hunger, and Malnutrition
Obi further expressed alarm over worsening human development indicators:
133 million Nigerians (63%) live in multi-dimensional poverty.
Unemployment is rising, and hunger is deepening.
652 children have died from malnutrition in Northern Nigeria in 2025 alone.
He referenced a Médecins Sans Frontières (MSF) report naming Katsina State as one of the worst-hit regions in the ongoing malnutrition crisis.
“We’re Mortgaging Our Children’s Future” – Obi
Peter Obi emphasized that borrowing is not inherently wrong if used responsibly and tied to productive outcomes. However, he accused the Tinubu government of borrowing without transparency or measurable impact.
“This government is mortgaging the future of young and unborn Nigerians. Borrowing should be strategic and tied to productive, transformational investments,” he warned.
He called for urgent reforms, including:
Cutting the cost of governance
Blocking financial leakages
Investing in human capital
Building a productive, self-reliant economy
“It is time to stop this fiscal indiscipline. Every kobo borrowed must deliver measurable results. A New Nigeria is possible,” Obi concluded.
