By Oluwakemi Kindness
Former Anambra State Governor, Peter Obi, has expressed concern over Nigeria’s projected $11.6 billion debt repayment plan for 2026, warning that it reflects the country’s worsening fiscal position.
Obi made the remarks in a statement shared on his official X account on Monday, saying the rising debt burden should raise serious questions about government spending priorities.
He said borrowing is not a problem when used for productive investments, but argued that Nigeria’s debt profile shows a different reality.
According to him, a large portion of past borrowing has gone into consumption rather than projects that deliver long-term development outcomes.
Obi also noted that Nigeria continues to accumulate new external loans, including recent arrangements from international lenders, which he said further increase the country’s debt exposure.
He compared debt servicing obligations with budget allocations for key sectors, noting that Nigeria’s combined spending on health, education, and poverty alleviation remains significantly lower than debt repayments.
Obi warned that this imbalance could weaken investment in human capital and social protection, which are critical for long-term development.
He added that in some advanced economies, borrowing is directed toward productive sectors such as infrastructure, education, healthcare, and innovation, which help sustain repayment capacity.
The former governor stressed that the key issue is not borrowing itself, but whether funds are used in ways that generate measurable economic returns and improve living standards.
Without this, he warned, debt servicing could become a long-term burden that limits growth and increases economic vulnerability.
His comments follow recent remarks by President Bola Tinubu, who projected Nigeria’s 2026 debt servicing at about $11.6 billion.
