Peter Obi Faults Tinubu's Government Over Economic Hardship, Questions Declining Capital Spending
Abuja, Nigeria — Former Anambra State governor and Nigeria Democratic Congress (NDC) presidential candidate, Peter Obi, has criticised President Bola Ahmed Tinubu's administration, arguing that improvements in some economic indicators have yet to translate into better living conditions for millions of Nigerians.
Obi's comments have renewed debate over the country's economic reforms, government spending priorities, rising living costs and the impact of economic policies on ordinary citizens.
In a statement reported by Nigerian media on October 12 and 13, 2026, Obi argued that increased government revenue and economic growth should not automatically be interpreted as evidence that Nigerians are becoming more prosperous. He maintained that economic progress should also be measured by employment opportunities, access to essential services and reductions in poverty and inequality.
Obi Questions Government Spending Priorities
One of Obi's major concerns relates to the Federal Government's debt-servicing costs and capital expenditure.
Citing the World Bank report Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, Obi said the Federal Government spent approximately ₦7.7 trillion on interest payments between January and June 2026, compared with total revenue of about ₦6.2 trillion during the same period.
According to his account of the figures, interest payments exceeded the revenue figure by approximately ₦1.5 trillion.
Obi also claimed that capital expenditure declined by around ₦700 billion during the first half of the year. Capital expenditure generally covers government spending on projects and assets such as roads, bridges, schools, hospitals and other public infrastructure.
He argued that the figures raised questions about the balance between servicing existing debts and financing projects that could improve living conditions and support economic activity.
These figures and interpretations were cited by Obi in his criticism of the administration. Their precise definitions and comparisons should be checked against the underlying World Bank report and official fiscal data.
Cost of Living Remains a Major Concern
The opposition politician also questioned whether the reported improvements in government revenue and other economic indicators were being felt by ordinary households.
According to Obi, many Nigerians continue to face difficulties paying for food, healthcare, education and other necessities.
He argued that economic reforms should be assessed by their effects on people's daily lives rather than by selected statistics alone.
For households struggling with rising expenses, the key questions include whether incomes can cover basic needs, whether businesses can create sustainable jobs and whether public services are becoming more accessible.
Obi further referred to concerns about multidimensional poverty, which measures deprivation across several areas of life, including education, health and living standards.
His position is that economic policies should deliver measurable improvements for vulnerable households, particularly young people seeking employment and families facing financial pressure.
Tinubu Government's Economic Reforms Under Scrutiny
The controversy comes amid continuing discussions about the economic reforms introduced under Tinubu, including fuel subsidy removal and changes to foreign exchange policy.
Supporters of the reforms have argued that difficult adjustments were necessary to address longstanding economic problems and improve public finances. Critics, including Obi, have questioned whether the benefits have been sufficient to offset the costs borne by citizens.
The debate highlights an important distinction between macroeconomic performance and household welfare. Government revenue, economic growth and financial stability are important indicators, but they do not, on their own, establish whether poverty is declining or living standards are improving.
A fuller assessment requires reliable data on inflation, employment, household incomes, public investment, debt servicing and access to essential services.
What Happens Next?
Obi has urged the Federal Government to place greater emphasis on policies that reduce poverty, create jobs, improve public services and make economic progress more visible in people's daily lives.
His criticism adds to the political debate surrounding Nigeria's economic direction as attention increasingly turns to governance and accountability ahead of the 2027 general elections.
Ultimately, the central question is whether the country's economic policies can produce sustainable growth while improving the welfare of ordinary Nigerians.
As the debate continues, official budget reports, updated economic statistics and independent assessments will be important in determining how much progress has been made and where further action may be required.
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