By Crystal Ugoeze
Former presidential candidate of the Labour Party, Mr. Peter Obi, has expressed strong concern over reports that the Federal Government plans to borrow about ₦20 trillion to finance the 2026 budget, warning that the move could further worsen Nigeria’s already fragile economic situation.
In a statement on Saturday, Obi noted that the proposed borrowing comes at a time when debt servicing is projected to consume nearly half of the country’s national revenue, while the nation’s borrowing requirement has reportedly risen by more than 72 per cent.
He questioned the rationale behind seeking new loans when Nigerians are grappling with severe economic hardship, rising insecurity, and widespread unemployment. Obi also raised concerns about fiscal transparency, asking what had become of revenues generated in 2025.
“How can we be discussing trillions in new borrowing for 2026 when we are still implementing the 2024 budget?” he asked, describing the situation as troubling and suggesting that the 2025 budget may still be largely unimplemented.
Obi further queried claims by the government that revenue targets had been surpassed since August, demanding clarity on how those revenues were applied. He warned against what he described as “uncontrolled and unexplained borrowing,” especially when such loans are not channeled into productive sectors of the economy but are instead used largely for consumption.
According to him, continued heavy borrowing amounts to mortgaging the future of younger generations and cannot deliver sustainable development. He reiterated his long-held position that Nigeria cannot borrow its way into prosperity.
“Nations do not develop by consuming more than they produce,” Obi said, stressing that growth comes from production, exports, value creation, and strong institutions that promote accountability and efficient use of public funds.
He also criticized what he called contradictions in government messaging, arguing that claims of rising revenue cannot be reconciled with record levels of borrowing. Governance, he said, must be anchored on transparency rather than propaganda.
Obi concluded by urging a shift in Nigeria’s fiscal direction, warning that the country cannot be rebuilt on what he described as misleading figures, rising debt, declining production, and persistent hardship.
“Our nation must move forward,” he said, adding his familiar refrain: “A New Nigeria is POssible.”