Peter Obi Warns on Nigeria's $11.6 Billion Debt Plan

Former Anambra State Governor Peter Obi raised alarms regarding Nigeria's projected $11.6 billion debt servicing plan due by 2026, emphasizing that this should concern all Nigerians. Obi's statements were made in a release on May 18, following President Bola Tinubu's remarks at the Africa Forward Summit in Nairobi, Kenya, co-hosted by Emmanuel Macron and William Ruto.

He criticized the government's fiscal priorities, arguing that while borrowing can be beneficial if managed properly, Nigeria's current debt accumulation has not resulted in visible sustainable development outcomes. Obi detailed Nigeria's recent borrowing, including approximately $5 billion secured from Abu Dhabi Bank and $1 billion facilitated through Citibank in London, alongside a proposed $1.25 billion from the World Bank and an additional $516 million reportedly arranged with Deutsche Bank.

He noted that Nigeria's total external debt stock rose to approximately $42.49 billion by December 2023, with domestic debt climbing to about N59.1 trillion, reflecting the government's reliance on borrowing for fiscal operations.