Nigeria’s debt servicing now bigger than health, education combined — Peter Obi knocks Tinubu govt
Former Labour Party presidential candidate, Mr Peter Obi, has criticised the rising debt profile under the administration of Bola Tinubu, warning that Nigeria’s debt servicing obligations are crowding out investments in critical sectors. Obi stated this in a statement titled, ‘Debt Servicing, Borrowing, and Nigeria’s Fiscal Priorities’, shared via his X handle on Monday. He said […] Nigeria’s debt servicing now bigger than health, education combined — Peter Obi knocks Tinubu govt
Black News 
Former Labour Party presidential candidate, Mr Peter Obi, has criticised the rising debt profile under the administration of Bola Tinubu, warning that Nigeria’s debt servicing obligations are crowding out investments in critical sectors.
Obi stated this in a statement titled, ‘Debt Servicing, Borrowing, and Nigeria’s Fiscal Priorities’, shared via his X handle on Monday.
He said the Federal Government’s projected expenditure of about $11.6 billion on debt servicing should concern Nigerians interested in the country’s economic future and development.
According to him, borrowing is not inherently wrong if it is prudently managed and channelled into productive sectors capable of generating long-term economic returns.
Obi cited countries including Japan, United Kingdom, United States, United Arab Emirates, Singapore and Indonesia as examples of nations with high debt levels that invest borrowed funds in education, healthcare, infrastructure and innovation.
He, however, argued that Nigeria’s situation differs because a significant portion of previous borrowings was allegedly spent on consumption with little visible developmental impact.
The former Anambra State governor further claimed that a substantial part of the debt currently being serviced was accumulated under the Tinubu administration, while borrowing has continued at what he described as a rapid pace.
Obi said the budget allocated ₦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 noted 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 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.
“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.”
Nigeria’s debt servicing now bigger than health, education combined — Peter Obi knocks Tinubu govt
