Former Labour Party (LP) presidential candidate, Peter Obi, has criticised the Federal Government’s plan to borrow ₦17.89 trillion to fund the 2026 budget, describing it as fiscally irresponsible.
In a post shared on his official X account on Friday, Obi raised concerns over Nigeria’s growing debt burden, noting that nearly half of projected national revenues for 2026 are already expected to go toward debt servicing.
He also questioned why funds from the 2025 budget remain largely unspent despite reported revenue surges.
“Today, Nigerians woke up to troubling news that the Federal Government plans to borrow about ₦20 trillion for the 2026 budget,” Obi wrote.
“This comes at a time when debt servicing alone is projected to consume nearly half of our national revenue, and borrowing requirements have surged by over 72%. How can we discuss trillions in new loans when 70% of 2025 capital projects remain unimplemented?”
Obi warned against what he called “fiscal rascality,” highlighting that uncontrolled borrowing often fuels consumption rather than productive investment.
He stressed that Nigeria cannot achieve prosperity by borrowing its way out of economic challenges.
“We cannot keep mortgaging the future of our children with thoughtless borrowing. Nations develop by producing, exporting, creating value, and building strong institutions that ensure accountability, not by consuming more than they produce,” Obi said.
He added that governance must be rooted in transparency and fiscal responsibility, arguing that misleading revenue figures and historic borrowing levels are undermining the country’s economic potential.
Critics have increasingly questioned the Federal Government’s borrowing strategy, pointing out that non-oil revenues reached ₦20.59 trillion from January to August 2025, yet borrowing needs remain high.
Obi called for policies that prioritise production, infrastructure, and human capital over debt-driven consumption.
