Peter Obi Raises Concerns Over Nigeria’s Rising Debt Burden and 2026 Debt Servicing Plan

Peter Obi has warned that Nigeria’s projected $11.6 billion debt servicing plan for 2026 could overshadow spending on healthcare, education, and poverty reduction, raising concerns over the country’s growing debt burden.

By Chisom Adaeze

Former Anambra State governor and presidential aspirant Peter Obi has expressed serious concern over Nigeria’s rising debt profile, warning that the country’s projected $11.6 billion debt servicing plan for 2026 could place enormous pressure on critical sectors such as healthcare, education, and poverty reduction.

Obi made the remarks while reacting to projections that the Federal Government may spend trillions of naira servicing debts next year amid continued economic challenges and growing public concerns over living conditions across the country.

According to the former governor, the scale of Nigeria’s debt servicing obligations reflects a troubling fiscal imbalance in which more resources are being directed toward loan repayments than investments capable of improving citizens’ welfare and stimulating long-term economic growth.

Obi questioned the borrowing priorities of the administration of Bola Ahmed Tinubu, arguing that a significant portion of Nigeria’s accumulated debt has not translated into visible development or sustainable economic productivity.

The former Labour Party presidential candidate stated that while borrowing is not inherently bad, debt should primarily be tied to productive investments that generate measurable returns for the economy.

He warned that continued borrowing without corresponding improvements in infrastructure, healthcare, education, manufacturing, and employment creation could deepen Nigeria’s economic vulnerability and widen social inequality.

According to Obi, the country’s proposed allocations to key sectors remain significantly lower than projected debt servicing obligations.

He noted that healthcare, education, and poverty alleviation combined may receive far less funding than what Nigeria plans to spend repaying creditors in 2026.

Economic analysts say the concerns reflect growing anxiety over Nigeria’s rising public debt, foreign exchange pressures, inflation, and weakening purchasing power among citizens.

Obi also compared Nigeria’s situation with countries such as Japan, United States, United Kingdom, and Singapore, where borrowed funds are often invested in sectors that drive industrial growth, innovation, healthcare, infrastructure, and education.

According to him, such economies are better positioned to manage debt because their borrowing supports productivity and long-term national development.

The former governor stressed that Nigeria risks turning debt servicing into a long-term structural burden if borrowed funds are not effectively managed and tied to economic expansion.

The comments come amid continued national debate over economic reforms, government spending, inflation, and the overall direction of Nigeria’s fiscal policy under the current administration.

Political observers believe Obi’s remarks also reflect growing opposition criticism ahead of the 2027 elections, as political actors increasingly position themselves around issues affecting the economy and cost of living.

As concerns over debt sustainability continue to grow, economists and policy experts have called for stronger fiscal discipline, increased revenue generation, and improved transparency in the management of public loans.