Obi faults FG’s plan to borrow ₦20trn, calls it ‘fiscal rascality’

Former Labour Party presidential candidate, Peter Obi, has condemned the Federal Government’s proposal to secure an additional ₦20 trillion loan for the 2026 fiscal year, describing the move as reckless and a threat to the nation’s future.

In a statement on Friday, Obi said the new borrowing plan was coming at a time when Nigeria’s debt servicing obligations are projected to consume almost half of national revenue, and when the government’s borrowing requirement has risen by over 72 per cent.

He expressed concern that the administration was discussing fresh multi-trillion-naira loans even while the 2024 budget was still being implemented and the 2025 budget yet to take shape. According to him, the development raises troubling questions about the utilisation of revenue already generated this year.

“Nigerians deserve to know where the 2025 revenues are,” Obi said. “How do we speak of borrowing for 2026 when the 2025 budget appears untouched and unimplemented, despite claims that government surpassed its revenue targets as far back as August?”

He accused the government of engaging in what he described as fiscal indiscipline and excessive borrowing that fails to stimulate production or economic growth. Rather than investing in sectors that create jobs and expand output, he said, borrowed funds are repeatedly channelled towards consumption.

“We cannot continue mortgaging the future of our children with needless loans. This pattern of thoughtless borrowing must stop,” he warned.

Obi maintained that sustainable development cannot be achieved through debt accumulation, insisting that nations grow by producing, exporting, and adding value – not by relying on loans to fund recurrent spending. He stressed that transparency, accountability, and efficient use of public funds remain essential to Nigeria’s economic recovery.

“You cannot tell Nigerians that revenue is rising while simultaneously pushing borrowing to historic levels. Governance must be anchored on truth, not propaganda,” he said.

The former Anambra governor urged the administration to rethink its fiscal approach, warning that continued reliance on debt, alongside shrinking production and worsening hardship, was pushing the country in the wrong direction.

“Our nation cannot move forward on a foundation of misleading figures, rising debts and unrelenting hardship. There must be a more prudent, productive path,” he said.