A former Anambra State Governor, Peter Obi, on Monday said that the country’s plan to spend about $11.6 billion on debt repayments in 2026 should worry Nigerians and raise broader questions about the current government’s fiscal priorities. Obi disclosed this on Monday through a statement published on his official X account, while expressing concern about the plan.
According to him, there is nothing inherently wrong with borrowing when it is guided by prudence and directed toward productive investment. The Nigeria Democratic Congress (NDC) presidential aspirant, however, noted that Nigeria’s situation is markedly different.
“A huge proportion of past borrowing has been directed toward consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness. It is also important to note that a huge portion of the debt currently being serviced was accumulated under the Tinubu administration itself, while borrowing has continued at a significant pace.
“The administration’s recent external borrowing alone includes about $6 billion (from First Abu Dhabi Bank in the UAE—$5 billion, and UK Export Finance via Citibank London—$1 billion), a further $1.25 billion under consideration from the World Bank, and an additional $516 million arranged through Deutsche Bank, bringing the latest known external loan commitments to roughly $7.8 billion.
In addition, domestic borrowing through monthly bond issuances continues to add to the overall debt stock.” READ ALSO: Presidential Ticket Guarantees, Other Issues Stopped Obi, Kwankwaso From Joining PRP —Baba-Ahmed Against this backdrop, Obi noted that Nigeria’s 2026 budget shows that health is ₦2.46 trillion, education is ₦2.56 trillion, and poverty alleviation is ₦865 billion, giving a combined total of about ₦5.885 trillion for these three critical sectors.
By comparison, Obi explained that debt servicing at about $11.6 billion (approximately ₦17–₦18 trillion, depending on exchange rate assumptions) is almost three times higher than the total allocation to health, education, and social protection combined. “This imbalance highlights a troubling fiscal reality in which debt obligations increasingly crowd out investment in human capital and poverty reduction.
Moreover, even within the limited allocations to these sectors, funds may not be fully released, and a significant portion of what is eventually released could be misappropriated. He cited countries such as Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore, and Indonesia that are all heavily indebted, yet he noted that their borrowings are largely channelled into education, healthcare, infrastructure, and innovation – sectors that generate long-term economic returns and sustain repayment capacity.
“As a result, despite high debt levels, their obligations remain more manageable because they are tied to measurable productivity”.