Peter Obi criticises Federal Government borrowing, says it’s not improving the economy
Peter Obi, former Labour Party presidential candidate and ex-governor of Anambra State, has criticised the Federal Government’s borrowing, saying it is not helping the economy grow or improving people’s lives.
He shared this view on April 30, 2026, on X (formerly Twitter), during ongoing concerns about Nigeria’s rising debt.
What Obi said
Obi warned that borrowing money for consumption instead of production is dangerous for the country.
He explained that Nigeria’s main problem is not just the amount of debt, but the fact that the borrowed money is not being used to create value.
According to him, debt that does not lead to jobs, economic growth, or better living standards will harm the country over time.
He added that responsible countries borrow money with clear plans, use it for productive projects, and ensure they can repay it.
Background
The criticism comes as the Federal Government continues to take new loans.
Recently, President Bola Ahmed Tinubu approved a $516 million external loan for the Sokoto–Badagry Superhighway project. The project aims to connect different parts of the country and improve trade and transportation.
While the government says the loan is for infrastructure and economic growth, many Nigerians are worried about the rising debt and whether such loans will truly benefit the economy.
Additional concerns
Obi referred to the Fiscal Responsibility Act 2007, which requires that government borrowing must have a clear purpose and expected benefits.
He argued that many recent loans do not meet these requirements or produce real results.
He also raised concern about the high cost of servicing debt, noting that the amount spent on repaying loans compared to government revenue is a major issue. According to him, this reduces funds available for important sectors like education, healthcare, and infrastructure.
What to know
Nigeria’s borrowing plan for 2026 has increased significantly to ₦29.20 trillion, up from an earlier estimate of ₦17.89 trillion.
This increase is due to a large gap between government spending and revenue. Total spending is projected at ₦68.32 trillion, while revenue is expected to be ₦36.87 trillion.
Because of this shortfall, the government plans to rely heavily on borrowing to finance its budget.
