Former Labour Party (LP) presidential candidate Peter Obi has faulted the Federal Government’s plan to borrow N17.89 trillion to finance the 2026 budget, questioning the logic of fresh loans amid high debt servicing costs and unimplemented projects.
In a post on his official X account on Friday, Obi said the proposed borrowing comes at a time when debt servicing is projected to consume nearly half of national revenue, warning that Nigeria is deepening its reliance on loans without corresponding gains in productivity.
Official budget documents show that the planned 2026 borrowing represents a 72 per cent increase on 2025 levels. The figures also indicate that about 70 per cent of capital projects in the 2025 budget remain unimplemented, largely due to revenue shortfalls, despite government claims of improved inflows.
“Today, Nigerians woke up again to the troubling news that the Federal Government is planning to borrow about ₦20 trillion in new loans to finance the 2026 budget.
“This is at a time when debt servicing alone is projected to gulp nearly half of our national revenue,” Obi wrote.
He questioned why fresh borrowing was being proposed when previous budgets were still in execution, asking how discussions on financing the 2026 budget could proceed while the 2024 budget was still being implemented.
“At a time when Nigerians are struggling under unprecedented hardship, insecurity and unemployment, the most logical question is: where is the revenue from 2025?” he said, adding that official statements had earlier claimed revenue targets were exceeded from August.
The former Anambra State governor described the situation as fiscal mismanagement, arguing that borrowing was increasingly funding consumption rather than investment in productive sectors of the economy.
“We cannot keep mortgaging the future of our children through thoughtless borrowing. For years, I have maintained that Nigeria cannot borrow its way into prosperity,” Obi said.
He added that sustainable development depends on production, exports and value creation, supported by strong institutions that ensure accountability and efficient use of public funds.
Obi also challenged what he described as contradictory government messaging, saying that claims of rising revenue sit uneasily with escalating borrowing levels.
“We cannot build a new Nigeria on misleading figures, rising debts and shrinking production,” he said.
His comments come amid wider criticism of the Federal Government’s fiscal strategy.
Data show that non-oil revenues reached N20.59 trillion between January and August 2025, yet borrowing requirements have continued to rise, fuelling calls for policies that prioritise domestic production over debt accumulation.
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