Former presidential candidate Peter Obi has raised alarm over reports that the Federal Government plans to borrow about ₦20 trillion to finance the 2026 budget, describing the move as reckless and unsustainable given Nigeria’s worsening fiscal position.
In a statement on Tuesday, Obi said the proposed borrowing comes at a time when debt servicing is projected to consume nearly half of the country’s revenue and when borrowing requirements have surged by more than 72 percent. He questioned the rationale for incurring new loans while Nigerians continue to face deepening hardship, insecurity, and unemployment.
Obi queried the status of the 2025 fiscal year, noting that the government was still implementing the 2024 budget yet already discussing massive borrowing for 2026. He argued that this raises serious concerns about the implementation of the 2025 budget and the whereabouts of revenues reportedly accrued.
He recalled that the government announced in August that it had surpassed its revenue targets, and asked why, despite such claims, borrowing continues to rise to what he described as “ridiculous historic levels.”
Obi criticised what he called “fiscal rascality,” arguing that current borrowing patterns lack transparency and are not channelled into productive sectors capable of stimulating growth. Instead, he said, they appear to support consumption rather than investment.
He warned that continued accumulation of debt amounts to mortgaging the future of Nigerian children through “thoughtless borrowing,” adding that the country cannot continue on its present path.
Reiterating his long-held position, Obi stressed that Nigeria cannot borrow its way into prosperity. He said nations grow by producing, exporting, creating value, and building strong institutions that ensure accountability and efficient public spending.
He maintained that governance must be based on transparency rather than propaganda and argued that Nigeria cannot claim rising revenue while simultaneously expanding debt at unprecedented levels. He said the country cannot progress with misleading figures, shrinking productive capacity, rising debt, and deepening hardship.
Obi concluded that Nigeria must take a different direction, insisting that “a new Nigeria is possible.”
