Former Labour Party presidential candidate, Peter Obi has criticised the federal government’s reported plan to borrow about ₦20 trillion to fund the 2026 national budget, warning that the move reflects what he called “fiscal rascality”.
In a statement posted on Facebook, Obi said Nigerians had once again been confronted with “troubling news” of massive new borrowing at a time when debt servicing is expected to take up nearly half of government revenue. He noted that borrowing requirements have already risen by more than 70%.
Obi questioned why the government was planning fresh loans for the 2026 fiscal year when the 2024 budget is still being implemented, and when authorities previously claimed to have exceeded 2025 revenue targets as early as August.
“At a time when Nigerians are struggling under unprecedented hardship, insecurity and unemployment, the most obvious question is: Where is the revenue from 2025?” he said. “How can we be discussing trillions in new borrowing for 2026 when we are still implementing the 2024 budget?”
The former Anambra State governor suggested that the development indicates the 2025 budget “remains untouched and unimplemented,” raising concerns about transparency in public finance management.
Obi accused the government of taking loans that neither support productive sectors nor create long-term economic value. He insisted that continued borrowing would “mortgage the future” of young Nigerians.
“For years, I have maintained that Nigeria cannot borrow its way into prosperity. Nations do not grow by consuming more than they produce,” he said, arguing that genuine development depends on production, exports, value creation and strong institutions.
He also criticised what he described as a contradiction in celebrating increased revenue while simultaneously expanding borrowing “to historic levels”, saying the country cannot progress on the basis of “misleading figures, rising debts and shrinking production”.
“A new Nigeria is possible,” he concluded, urging more transparency and prudence in economic planning.