Peter Obi Faults Tinubu Government Over ₦20trn Loan
Abuja, Nigeria — Former Labour Party presidential candidate, Peter Obi, has strongly criticised the President Bola Tinubu-led Federal Government over plans to secure a fresh ₦20 trillion loan, despite official claims that government revenue has significantly improved.
In a statement on Friday, Peter Obi described the proposed borrowing as fiscally irresponsible, warning that Nigeria is drifting deeper into a dangerous debt trap that could worsen poverty and economic instability.
Concerns Over Rising Debt Burden
According to Peter Obi, the Federal Government’s plan to borrow about ₦20 trillion to fund the 2026 budget contradicts its repeated claims of improved revenue performance following subsidy removal and exchange rate reforms.
He noted that debt servicing already consumes a substantial portion of national revenue, raising concerns about how additional borrowing would impact funding for critical sectors such as education, healthcare, infrastructure, and job creation.
“You cannot claim increased revenue and still resort to massive borrowing without clear accountability,” Obi said, warning that such practices threaten Nigeria’s economic future.
Questions Over Transparency and Accountability
The former Anambra State governor also questioned the transparency of government finances, asking for a detailed public breakdown of revenues reportedly generated in 2025 and how they were utilised.
Obi accused the government of engaging in what he termed “fiscal rascality”, arguing that borrowing should be directed toward productive investments that boost manufacturing, exports, and employment rather than recurrent expenditure.
Call for Sustainable Economic Management
Reiterating his long-held position, Obi stressed that Nigeria cannot borrow its way into prosperity, urging the Tinubu administration to prioritise production-driven growth, fiscal discipline, and prudent economic planning.
He called on policymakers to adopt strategies that promote value creation, strengthen institutions, and reduce reliance on debt to fund government operations.
Growing Public Debate
The proposed ₦20 trillion loan plan has sparked widespread debate among economists, civil society groups, and opposition figures, with many warning that unchecked borrowing could further strain Nigeria’s fragile economy.
As discussions on the 2026 budget intensify, pressure is mounting on the Federal Government to justify the new loan request and provide clearer details on revenue generation and spending priorities.
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