Obi Warns New $21 Billion FG Loan Scheme Is ‘Mortgaging Our Children’s Future’ Amid Accountability Concerns

Former presidential candidate Peter Obi has voiced serious concern about Nigeria’s growing debt burden, warning that the country’s current fiscal path threatens future generations and could worsen living standards for millions.

In a statement shared on his X handle, Obi criticized the Senate’s recent approval of new borrowings, which include $21 billion, €2.2 billion, and ¥15 billion in external loans for the 2025–2026 fiscal period, alongside a ₦750.98 billion domestic bond and a €65 million grant.

He estimated that these additions bring Nigeria’s public debt to around ₦187 trillion, up from ₦149.39 trillion in Q1 2025. He warned the total could surpass ₦200 trillion by the end of the year.

“We are amassing unsustainable debt at an alarming rate with minimal progress in vital sectors like education, healthcare, power, and security,” Obi stated.

He noted that before the GDP rebasing, Nigeria’s GDP stood at ₦269.2 trillion (roughly $180 billion), meaning the debt load equaled nearly 70% of the economy. Following a revision, the GDP rose to ₦372.8 trillion ($243.7 billion), yet the debt-to-GDP ratio still sits at a record 50.16%.

Obi highlighted that while public debt grew by ₦27.72 trillion year-on-year and ₦4.72 trillion quarter-on-quarter, indicators of national development remain stagnant or in decline.

He also pointed out the rise in security spending—from ₦2.98 trillion in 2023 to ₦4.91 trillion in 2025—has not curbed insecurity, citing over 10,217 deaths and the displacement of 672 villages over two years.

Basic infrastructure remains underdeveloped, he added, with only 60,000 kilometers of Nigeria’s 195,000 km road network paved. Meanwhile, electricity generation still falls below 5,000 megawatts for a population exceeding 200 million.