Former Labour Party (LP) presidential flagbearer, Peter Obi, has criticised the Federal Government over its plan to borrow ₦17.89 trillion to finance the 2026 budget.

In a post he shared on his official X account on Friday, Obi lamented that the FG is planning to take another loan amid high debt servicing costs nearing half of projected revenues.

He also questioned the unspent 2025 funds despite reported revenue surges, with official documents confirming ₦17.89 trillion in planned 2026 borrowing, a 72% increase from 2025, while 70% of the 2025 capital projects remain unimplemented due to revenue shortfalls.

“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 said.

“This is at a time when debt servicing alone is projected to gulp nearly half of our national revenue, and when our borrowing requirement has surged by over 72%.

“At a time when Nigerians are struggling under unprecedented hardship, insecurity, and unemployment, we must ask the most important and logical questions: 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? One is genuinely worried. This suggests, very clearly, that the 2025 budget is still untouched and unimplemented.

“So, where are all the revenues that accrued in 2025, even when we were told that we had surpassed the revenue targets since August?”

Speaking further, Obi said it is time for the government to stop this “fiscal rascality, especially with uncontrolled and unexplained borrowing that is not being invested in the productive sectors of the nation, but instead ends up in consumption.

“We cannot keep mortgaging the future of our children through thoughtless borrowing. We cannot continue this way.
For years, I have consistently maintained that Nigeria cannot borrow its way into prosperity.”

He argued that nations do not develop by consuming more than they produce, but rather, they develop by producing, exporting, and creating value, while building strong institutions that ensure accountability and efficient use of public funds.

The former Governor of Anambra State added: “We cannot tell Nigerians that revenue is increasing while simultaneously increasing borrowing to ridiculous historic levels. Governance must be built on transparency, not propaganda.

“We cannot build a new Nigeria on the foundation of misleading figures, rising debts, shrinking production, and continuous hardship. Our nation must move forward.”

Critics have decried the Federal Government’s failures, amplifying calls for production-focused policies over debt, as non-oil revenues hit ₦20.59 trillion from January to August 2025, yet the FG failed to curb borrowing needs.