Opposition Candidate Slams Government’s Proposed N17.89 Trillion Borrowing Plan as “Fiscal Rascality”
A prominent Nigerian political figure has voiced strong criticism against the Federal Government’s ambitious plan to borrow a staggering N17.89 trillion in 2026 to cover a widening budget deficit. Peter Obi, the presidential candidate for the Labour Party in the 2023 elections, has characterized this move as “fiscal rascality,” arguing that it amounts to “mortgaging the future” of the nation’s youth through what he describes as “thoughtless borrowing.”
The Federal Government’s intention, as outlined in the 2026 budget framework obtained from the Budget Office of the Federation, stems from revenue projections that are falling significantly short of anticipated expenditure needs. This shortfall necessitates a substantial increase in borrowing to bridge the gap.
Key Details of the Proposed 2026 Budget Framework:
- Fiscal Deficit Projection: The framework indicates a projected fiscal deficit of N20.12 trillion for 2026, a notable increase from the N14.10 trillion approved for 2025.
- Borrowing Requirement: This larger fiscal deficit, coupled with a weaker revenue outlook, drives the substantial borrowing requirement.
- Expenditure Outlook: Despite the deficit concerns, overall expenditure is projected to see a slight decrease compared to the current year.
Obi expressed his bewilderment at the government’s contemplation of new borrowing for 2026, especially when the 2024 budget is still in its implementation phase and the specifics of the 2025 budget remain largely undisclosed.
“Today, Nigerians woke up again to the troubling news that the Federal Government is planning to borrow about N20tn in new loans to finance the 2026 budget,” Obi stated. “This is at a time when debt servicing alone is projected to gulp nearly half of our national revenue, and when our borrowing requirement has surged by over 72 per cent.”
He highlighted the severe economic pressures faced by citizens, stating, “At a time when Nigerians are struggling under unprecedented hardship, insecurity, and unemployment, we must ask the most important and logical questions: Where is the revenue from 2025? How can we be discussing trillions in new borrowing for 2026 when we are still implementing the 2024 budget? One is genuinely worried. This suggests, very clearly, that the 2025 budget is still untouched and unimplemented.”
Obi also raised pointed questions regarding the reported revenues the Federal Government has generated to date. “So, where are all the revenues that accrued in 2025, even when we were told that we had surpassed revenue targets since August?” he queried.
He emphasized the need for a fundamental shift in fiscal management, urging an end to what he termed “fiscal rascality.” Obi argued that the current borrowing practices are uncontrolled and lack transparency, with funds not being channeled into productive sectors of the economy but rather being consumed.
The former governor of Anambra State firmly asserted that Nigeria cannot achieve prosperity through borrowing. “Nations do not develop by consuming more than they produce,” Obi explained. “They develop by producing, exporting, and creating value, while building strong institutions that ensure accountability and efficient use of public funds.”
He further criticized the government’s narrative, stating, “We cannot tell Nigerians that revenue is increasing while simultaneously increasing borrowing to ridiculous historic levels. Governance must be built on transparency, not propaganda.”
Obi concluded with a call for a more responsible and forward-looking approach to national development. “We cannot build a new Nigeria on the foundation of misleading figures, rising debts, shrinking production, and continuous hardship. Our nation must move forward,” he declared. His remarks underscore a growing concern among critics about the sustainability of Nigeria’s debt burden and the government’s fiscal policies.
