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• FG not over-borrowing –Dare
From Juliana Taiwo-Obalonye, Sola Ojo and Idu Jude, Abuja
FrontlinE opposition party, the Labour Party (LP) and its presidential candidate in the 2023 election, Peter Obi, have again raised concerns over Nigeria’s rising debt profile, describing the trend as reckless and unsustainable.
The Presidency has, however, defended the rising debt levels, emphasising that borrowing is a necessary and strategic tool for economic development rather than a sign of financial imprudence.
In a statement issued by its interim National Publicity Secretary, Tony Akeni, LP declared that Nigeria’s debt burden has reached alarming levels without corresponding development in infrastructure or economic growth.
Citing figures from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN), the party noted that the country’s public debt soared to ₦149.39 trillion in the first quarter of 2025, up from ₦121.7 trillion in December 2024.
What is more frightening, the party said, is that within the same three-month period, Nigeria’s debt-to-GDP ratio jumped to 52 percent, far above the 40 percent safe threshold set by Nigeria’s fiscal laws
It further lamented that Nigeria spent ₦8.93 trillion ($6.2 billion) on debt servicing in the past nine months, representing 61 percent of total revenues earned.
The party commended the political will of the Speaker of the House of Representatives, Tajudeen Abbas, for admitting that the All Progressives Congress (APC)-led administration has breached the debt ceiling and revenue security threshold enshrined in the country’s fiscal laws, describing him as a true patriot for criticising the borrowing culture of his political party.
The LP challenged the Senate President, Godswill Akpabio, to emulate Speaker Abbas by rejecting future loan requests from President Bola Tinubu.
But the Special Adviser to President Tinubu on Media and Public Communication, Sunday Dare, responded on his official X account @SundayDareSD to the criticisms, particularly to Kogi Senator, Dino Melaye, who labelled the government’s borrowing as excessive and reckless. “We will not be surprised if the President starts borrowing from OPay and Moniepoint very soon.”
Dare dismissed Melaye’s claims as uninformed noise, clarifying that the increase in Nigeria’s reported public debt of ₦149.39 trillion as of March 31, 2025, is mainly due to the depreciation of the naira not new borrowing.
“When the currency depreciates, the naira value of existing external debt rises even without fresh loans.”
He highlighted that Nigeria’s debt-to-GDP ratio currently ranges between 40 and 45 percent, which is moderate compared to South Africa’s 70 percent and Ghana’s over 90 percent. Dare argued that the greater issue lies in improving government revenue generation rather than blaming borrowing levels.
“Debt is a legitimate instrument for financing growth and reforms. The key consideration is sustainability, not empty rhetoric. Unfortunately, Dino prefers theatrics over facts.”
The presidential aide also noted progress in government revenue collection, which enhances Nigeria’s ability to meet its debt obligations.
According to him, the Tinubu administration is committed to the Renewed Hope Agenda reforms aimed at broadening the revenue base, sustaining investments, and maintaining debt sustainability.
“Until Dino understands the fundamentals of economics, his commentary will remain entertainment, not enlightenment,” Dare concluded.
Despite this, the LP expressed concern that President Tinubu, who is on a 10-day vacation in France, has continued to pursue fresh loans, including a new World Bank facility.
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“Speaker Abbas’s admission of President Tinubu as the architect-in-chief of Nigeria’s skyscrapping debts, though late, deserves commendation if it will help curb the APC administration’s recklessness in loan procurements.”
Mr. Obi, on his verified ‘X’ handle yesterday, said he received several messages during his short leave over the weekend, with many Nigerians expressing worry about the nation’s mounting debt.
He stressed that he has consistently warned against uncontrolled borrowing without corresponding productivity.
“There’s nothing wrong with borrowing, What matters is ensuring that every loan translates into real, measurable productivity.
“Borrowing, if not directed towards critical areas of development, such as health, education, and poverty alleviation, will only worsen the economy.”
Obi lamented that trillions of naira already borrowed by the government could not be traced to meaningful impact in key sectors.
According to him, instead of improving living standards, the country has continued to experience deepening poverty, worsening unemployment, decaying healthcare, and a deteriorating education system.
Comparing Nigeria with peer nations, Obi noted that countries such as Indonesia, Vietnam, Egypt, and Bangladesh have also relied on loans but have made visible improvements in infrastructure, power, and social services.
“In our case, we borrow for power, yet darkness persists; we borrow for infrastructure, yet roads remain impassable; we borrow for health, yet hospitals lack basic equipment,” he stated.
The former governor of Anambra State also decried the high cost of debt servicing, noting that over 70 percent of government revenue is now spent on servicing loans, leaving little for critical investments in health, education, job creation, and poverty reduction.
Obi faulted the Federal Government’s recent move to seek an additional $1.75 billion loan from the World Bank, despite claims by President Bola Tinubu that Nigeria had already met its revenue target for the year.
He described the step as “fiscal indiscipline” that could mortgage the future of Nigerian youths.
He reiterated his call for responsible borrowing, insisting that loans should only be tied to productive ventures capable of generating economic returns.
“If we do not act with urgency, our children and youths will inherit nothing but debt and despair, with no sustainable future,” Obi warned.
The LP called on Akpabio to lead responsibly by rejecting loan requests that lack clear, achievable blueprints for economic growth, infrastructure, and social development.
“Taking the initiative ahead of Akpabio, the Speaker has shown a resounding example of patriotism. Both presiding officers must ensure that wasteful and prodigal borrowings are rejected outright in the interest of Nigerians,” LP said.
It warned that unchecked borrowing could plunge Nigerians deeper into poverty, with dire consequences for political stability.
The solution is to end the APC government’s prodigal borrowing and squandering of loans altogether, or at the very least, enforce strict oversight and ensure commensurate returns for every naira borrowed,” the party warned.
