By Joe Udo
ABUJA (CONVERSEER) – The 2023 presidential candidate of the Labour Party, Peter Obi, has raised concerns over Nigeria’s growing debt profile, worsening insecurity, and deepening poverty under President Bola Tinubu’s administration, warning of a looming fiscal and development crisis.
In a statement on Monday, Obi criticised the National Assembly for approving new external and domestic borrowings, which he said lacked accountability, transparency, and tangible impact on the lives of Nigerians.
He noted that the Senate, on 22 July 2025, approved additional borrowings of $21 billion, €2.2 billion, ¥15 billion, and ₦750.98 billion in domestic bonds, alongside a €65 million grant. According to him, this raises Nigeria’s total debt stock to about ₦187 trillion, up from ₦149.39 trillion as of the first quarter of 2025, and could surpass ₦200 trillion by year-end.
“Before rebasing, our debt was equivalent to nearly 70% of GDP. After rebasing—which pushed GDP to ₦372.8 trillion (about $243.7 billion)—our debt still stands at over 50.16% of GDP, the highest in our history,” Obi said.
Rising Debt, Falling Security
Despite massive security spending, Obi said insecurity had worsened nationwide, with ₦4.91 trillion allocated for security in 2025 compared to ₦2.98 trillion in 2023.
“Between May 29, 2023, and May 29, 2025, over 10,217 people were killed, and 672 villages were sacked across the country. How do we explain this horrific outcome despite the trillions spent on security?” he asked.
He said insecurity, particularly in rural areas, has continued to drive displacement, hunger, and poverty, noting that increasing borrowings without demanding measurable results from security agencies was unacceptable.
Infrastructure and Power Crisis
Obi also lamented Nigeria’s poor infrastructure and power sector performance, highlighting that 135,000 km of the country’s 195,000 km road network remains unpaved and largely unusable.
“In 2025, we are still producing less than 5,000 MW of electricity for over 200 million citizens. That’s simply unacceptable,” he said.
Poverty, Malnutrition, and Social Decline
Obi drew attention to Nigeria’s worsening poverty index, where 133 million people, or 63% of the population, are multi-dimensionally poor. He also cited a recent Médecins Sans Frontières alert on malnutrition in northern Nigeria, particularly Katsina State, where 652 children reportedly died from lack of nutrition and medical care.
“This is a country blessed with enormous natural and human resources. Yet, we cannot feed our children. No one should go to bed hungry in a nation like Nigeria,” Obi said.
He criticised the declining state of education and healthcare, warning that unemployment and collapsing social safety nets were pushing millions further into hardship.
Call for Fiscal Discipline
The former Anambra State Governor condemned what he called “reckless borrowing without measurable outcomes or investment in productive sectors”, saying it amounted to “mortgaging the future of young and unborn Nigerians”.
“Borrowing is not inherently bad if it is tied to sustainable, productive projects with measurable outcomes. But what we are witnessing is reckless borrowing, without impact. This is fiscal indiscipline at its worst,” he said.
Obi called for disciplined economic management, urging the government to cut waste, block revenue leakages, invest in human capital, and build a productive economy.
“Nigeria cannot continue on this path. We must stop borrowing recklessly while poverty deepens and public trust erodes.
“It is time to build a New Nigeria—where leadership is responsible, development is people-centred, and every kobo borrowed delivers measurable results,” he stated.
