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Former Anambra State governor and leading opposition figure, Peter Obi, has criticised the borrowing pattern of President Bola Ahmed Tinubu, warning that Nigeria’s rising debt profile is becoming a long-term structural burden capable of undermining economic growth and worsening poverty.
In a statement issued on Monday by the Peter Obi Media Reach (POMR) and signed by its spokesperson, Ibrahim Umar, Obi expressed concern over reports that Nigeria would spend approximately $11.6 billion on debt servicing, describing the figure as alarming for the country’s economic future.
According to Obi, borrowing by itself is not a problem if the funds are channelled into productive investments capable of stimulating growth, creating jobs and improving national productivity. He noted that several developed economies, including Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore and Indonesia, maintain high debt profiles but utilise borrowed funds to finance strategic sectors such as education, healthcare, infrastructure and innovation.
He argued that such investments ultimately strengthen economic productivity and repayment capacity, making debt more sustainable.
Obi, however, maintained that Nigeria’s borrowing history has largely been directed toward consumption rather than long-term development projects that could justify the mounting debt obligations.
The former presidential candidate further alleged that a significant portion of the debts currently being serviced was accumulated under the present administration, which, according to him, continues to seek additional loans from both domestic and international creditors.
He cited recent external borrowing arrangements amounting to nearly $7.8 billion, including about $5 billion from First Abu Dhabi Bank in the United Arab Emirates, $1 billion from UK Export Finance through Citibank London, as well as additional facilities being considered from the World Bank and Deutsche Bank.
Obi also expressed concern over the increasing level of domestic borrowing through monthly bond issuances, warning that the growing debt stock could further constrain government spending on critical sectors.
Drawing comparisons with the proposed 2026 budget, Obi noted that allocations to healthcare, education and poverty alleviation totalled about ₦5.885 trillion, while projected debt servicing obligations could rise to between ₦17 trillion and ₦18 trillion, nearly three times the combined allocation to the social sectors.
He described the development as a troubling fiscal imbalance that threatens investment in human capital development and social welfare.
Obi further questioned the efficiency of government spending, alleging that even the limited allocations to key sectors were not always fully released or effectively utilised.
“The issue is not merely about borrowing,” he stated, “but whether the borrowed funds are being converted into measurable productivity, inclusive growth and improved living standards for Nigerians.”
He warned that unless Nigeria’s debt-driven spending translates into sustainable economic development, debt servicing would continue to evolve from a temporary fiscal responsibility into a long-term economic burden capable of stifling national development and deepening economic vulnerability.
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