The Presidency has replied Peter Obi, the presidential flagbearer of the Labour Party (LP) in the 2023 elections, following his statement on Nigeria’s rising debt, setting the record straight on the country’s borrowing plan.
Obi on Tuesday morning via a post he shared on his official X account had lamented that Nigeria’s debt might likely be over N200 trillion by the end of 2025.
Obi said as Nigeria’s Gross Domestic Product (GDP) before rebasing was about N269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of the country’s previous GDP.
The LP chieftain stated that even after the rebasing, which pushed Nigeria’s GDP to about N372.8 trillion (about $243.7billion), the government would have borrowed about 50.16 % of the new GDP (with the approved loans), the highest debt-to-GDP ratio in the nation’s history.
Reacting, Sunday Dare, the Special Adviser, Media & Public Communication/Spokesperson to President Bola Tinubu, set the record straight on Nigeria’s borrowing plan.
“What was approved? The Senate approved a Medium-Term Borrowing Plan, not ₦21 trillion for immediate spending. Foreign Loans: ~$21 billion (including €4bn, ¥15bn & a $65m grant) and Domestic Bond: $2 billion (~₦758bn),” Dare explained.
According to Dare, disbursement is over 2025–2026, not a lump sum, pointing out that these funds support targeted investments, not recurrent budgets.
On where the money is going, he said
every dollar is tied to critical infrastructure and social projects: Rail, power, broadband, health, education, housing and security.
Dare explained that this is how economies grow, not through handouts or headlines, but by fixing roads, lights, and lives.
On whether the debt sustainable, Dare answered positively, saying: “Yes. After the July 2025 GDP rebasing, Nigeria’s debt-to-GDP ratio dropped to 39%, below our 40% cap.
“Our borrowing remains within safe limits, guided by a debt strategy that favors concessional loans and careful oversight.”
On who is watching the process, Dare said disbursements are stage-gated, explaining that no funds move without the approval of the Federal Executive Council (FEC), Debt Management Office (DMO) oversight and National Assembly review.
According to the Special Adviser to President Tinubu, this is accountability by design, not business as usual.
Speaking about the ₦758bn Pension Bond, Dare explained that it is not new spending but a restructuring tool to settle pension arrears and honour commitments to retired workers.
On the reforms that back this up, he stated that President Tinubu’s reforms, fuel subsidy removal and Foreign Exchange (FX) unification have been tough but necessary.
He added that the borrowing plan helps cushion the impact while driving long-term results.
On the bottom line, Dare said “Nigeria’s borrowing is planned, project-linked, and responsible. It is not a free-for-all. It is not unsustainable and it is not business as usual. Let us debate with data. Let’s lead with truth.”
