Labour Party presidential candidate in the 2023 election, Peter Obi, has criticised the Federal Government’s plan to borrow N17.89 trillion in 2026.
The former governor of Anambra State described the move as fiscally reckless and unjustifiable amid “unprecedented hardship, insecurity, and unemployment.”
His comments followed reports that the government intends to increase new borrowing from N10.42 trillion in 2025 to N17.89 trillion in 2026, amounting to 72 per cent rise in fresh loans.
According to the Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, revenue projections remain significantly lower than expenditure needs, widening the deficit and deepening concerns over debt sustainability.
Debt servicing is projected to consume nearly half of national revenue in 2026.
Reacting in a statement posted on X on Friday, Obi said the borrowing plan raises urgent questions about transparency and fiscal responsibility.
“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,” he wrote.
“This is at a time when debt servicing alone is projected to gulp nearly half of our national revenue.”
Obi questioned the status of government earnings for the current fiscal year.
“Where is the revenue from 2025? How can we be discussing trillions in new borrowing for 2026 when we are still implementing the 2024 budget?” he said, suggesting that the 2025 budget “is still untouched and unimplemented.”
He accused the government of engaging in “fiscal rascality,” arguing that rising loans are not being channelled into productive sectors.
“We cannot keep mortgaging the future of our children through thoughtless borrowing. Nations do not develop by consuming more than they produce. They develop by producing, exporting, and creating value,” he said.
The ex-governor insisted that governance must prioritise transparency and accountability.
“We cannot tell Nigerians that revenue is increasing while simultaneously increasing borrowing to ridiculous historic levels. Our nation must move forward,” he maintained.
