By Muhammad Mamman
In a scathing critique, Peter Obi, former Anambra State governor, has accused President Bola Tinubu’s administration of driving Nigeria into an unprecedented debt crisis, with the nation’s debt-to-GDP ratio reaching historic levels. Obi warned that the government’s reckless borrowing, coupled with a lack of tangible progress, threatens Nigeria’s economic stability and future prosperity.
In a statement issued on Tuesday, Obi highlighted the dire state of Nigeria’s economy, noting that despite massive borrowing, the country continues to grapple with worsening poverty, rising unemployment, and a deepening malnutrition crisis. “Over two years into this administration, Nigeria faces a staggering 63% multidimensional poverty rate, with 133 million citizens affected. Tragically, 652 children have died due to malnutrition in Northern Nigeria alone,” he said.
Obi revealed that Nigeria’s debt has soared to unsustainable levels. “Prior to GDP rebasing, our economy stood at N269.2 trillion (approximately $180 billion), yet the government has borrowed nearly 70% of that figure. Even after rebasing, which raised our GDP to N372.8 trillion ($243.7 billion), the approved loans equate to 50.16% of the new GDP—the highest debt-to-GDP ratio in our nation’s history,” he explained.
The former governor expressed alarm at the lack of visible outcomes from this borrowing spree. “With an annual debt increase of N27.72 trillion and a quarterly rise of N4.72 trillion, we are accumulating unsustainable debt with little to show for it. Critical sectors such as education, healthcare, electricity, and security remain woefully underfunded and neglected,” Obi stated.
He pointed to Nigeria’s dismal performance across key human development indicators, underscoring the government’s failure to address systemic challenges. “Education is underfunded, with standards in freefall. Healthcare remains out of reach for millions, particularly the poorest. Security has deteriorated, with over 10,217 lives lost and 672 villages attacked between May 2023 and May 2025, despite a rise in security spending from N2.98 trillion to N4.91 trillion,” he noted. Infrastructure, too, remains in disrepair, with 135,000km of Nigeria’s 195,000km road network unpaved and largely impassable.
Obi raised further concerns about the trajectory of Nigeria’s debt, projecting it could exceed N200 trillion by year-end. “With public debt at N149.39 trillion in Q1 2025, the recent Senate approval of $21 billion, €2.2 billion, ¥15 billion in external loans, a €65 million grant, and N750.98 billion in domestic bonds will push our total debt to approximately N187 trillion,” he warned.
Calling for urgent fiscal discipline, Obi urged the government to prioritise investments in education, healthcare, and infrastructure to reverse Nigeria’s economic decline and secure a sustainable future for its citizens.
