Peter Obi, the Labour Party’s candidate for president in the 2023 election, has spoken out against the federal government’s intention to borrow N17.89 trillion in 2026.
The previous governor of Anambra State called the action fiscally irresponsible and unacceptable in light of “unprecedented hardship, insecurity, and unemployment.”
His comments came after news that the government plans to raise new borrowing from N10.42 trillion in 2025 to N17.89 trillion in 2026, a 72 percent increase in new loans, according to Vanguard.
The Ministry of Budget and Economic Planning’s Abridged Budget Call Circular says that revenue predictions are still much lower than spending demands, which makes the deficit bigger and worries about the sustainability of the debt even more.
Debt servicing is expected to take up about half of the country’s income in 2026.
Obi said in a statement on X today that the borrowing proposal makes important concerns about openness and economic accountability.
He stated, “Today, Nigerians woke up to the bad news that the federal government plans to borrow about ₦20 trillion in new loans to pay for the 2026 budget.”
“This is happening at a time when paying off debt is expected to take up almost half of our national revenue.”
Obi asked about the government’s income for the current fiscal year.
“Where is the money coming from in 2025?” How can we be talking about borrowing trillions of dollars for 2026 while we’re still working on the 2024 budget? He added that the 2025 budget “is still untouched and unimplemented.”
He said the government was doing “fiscal rascality” since they weren’t putting the money they were borrowing into productive areas.
“We can’t keep borrowing money without thinking about how it will affect our kids’ future.” Countries don’t grow when they eat more than they make. “They grow by making things, selling them, and adding value,” he remarked.
The former governor said that openness and responsibility should come first in government.
“We can’t tell Nigerians that income is going up while also borrowing more money than ever before.” He said, “Our country must move forward.”
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