Nigeria’s debt payments now exceed combined health and education spending, says Peter Obi.

Former Labour Party presidential candidate Peter Obi has criticized the growing debt burden under President Bola Tinubu’s administration, warning that Nigeria’s debt‑servicing costs are diverting resources from essential sectors.

Obi released a statement titled “Debt Servicing, Borrowing, and Nigeria’s Fiscal Priorities” on his X account on Monday.

He said the federal government’s projected spending of about $11.6 billion on debt servicing should alarm Nigerians who care about the country’s economic future and development.

Obi added that borrowing is not inherently wrong if it is managed prudently and directed toward productive sectors that can generate long‑term returns.

He cited Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore, and Indonesia as examples of countries with high debt levels that invest borrowed funds in education, healthcare, infrastructure, and innovation.

However, Obi argued that Nigeria’s situation is different because a large share of past borrowings was allegedly used for consumption with little visible developmental impact.

The former Anambra State governor further claimed that a substantial portion of the debt currently being serviced was accumulated during the Tinubu administration, while borrowing has continued at a rapid pace.

Obi noted that the budget allocates ₦2.46 trillion to health, ₦2.56 trillion to education, and ₦865 billion to poverty alleviation, bringing the combined total for the three sectors to about ₦5.885 trillion.

He pointed out that debt servicing, estimated at between ₦17 trillion and ₦18 trillion depending on exchange rates, is almost three times higher than the combined allocation to the three sectors.

“During his recent foreign tour, President Bola Ahmed Tinubu stated that Nigeria will spend about $11.6 billion on debt servicing, a figure that should concern anyone interested in the country’s economic future and long‑term development,” Obi said. “There is nothing inherently wrong with borrowing when it is guided by prudence and directed toward productive investment.”

“Nigeria’s situation, however, is markedly different. A huge proportion of past borrowing has been directed toward consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness.”

“It is also important to note that a huge portion of the debt currently being serviced was accumulated under the Tinubu administration itself, while borrowing has continued at a significant pace.”

“Against this backdrop, Nigeria’s 2026 budget shows that health is ₦2.46 trillion, education is ₦2.56 trillion, and poverty alleviation is ₦865 billion, giving a combined total of about ₦5.885 trillion for these three critical sectors. By comparison, debt servicing at about $11.6 billion (approximately ₦17–₦18 trillion, depending on exchange rate assumptions) is almost three times higher than the total allocation to health, education, and social protection combined.”

“This imbalance highlights a troubling fiscal reality in which debt obligations increasingly crowd out investment in human capital and poverty reduction.”