President Bola Tinubu’s request to borrow about $24.14 billion from foreign lenders has stirred concern among economists, opposition politicians, and civil society groups, who fear the move could further worsen Nigeria’s debt crisis.
If approved by the National Assembly, the loan could increase Nigeria’s total public debt from N144.67 trillion at the end of 2024 to over N182.91 trillion by 2026. The proposed borrowing includes $21.54bn, €2.19bn, and ¥15bn, which, at current exchange rates, amount to over N38.24 trillion.
In a letter to the House of Representatives, President Tinubu said the loan would support infrastructure, healthcare, education, agriculture, water supply, security, and public finance reforms. He claimed that each project had been thoroughly assessed for its economic benefits.
“The most important thing is what the money is being used for, and that’s what Nigerians will be focused on,” said Johnson Chukwu, CEO of Cowry Assets Management Ltd.
He warned that borrowing without efficient use would become a burden. “If borrowed funds are invested in assets that generate value higher than the loan, then it is worth it.”
President Tinubu also asked lawmakers to approve a $2bn bond to be issued in the domestic market and another N758bn to settle pension debts owed to retirees under the Contributory Pension Scheme.
Economists have raised red flags over Nigeria’s increasing debt, especially as the country’s debt servicing costs are rising faster than its spending on infrastructure.
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Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said, “Debt service is already far more than the appropriation for capital spending,” and warned that growing debt could cripple essential government services. “We need to tread very cautiously with respect to debt commitments.”
Prof. Segun Ajibola of Babcock University supported the pension bond but cautioned against printing more money to solve financial problems.
“It is disheartening for senior citizens who have served the nation to wait endlessly for their entitlements, especially in this harsh economy,” he said.
However, the opposition Peoples Democratic Party (PDP) described Tinubu’s plan as reckless. PDP spokesman Debo Ologunagba said, “This is what happens when those in government are self-serving rather than people-oriented.”
Ologunagba urged the National Assembly to reject the loan request and demand full disclosure of how past loans were used. “We have lost count of how much the APC administrations, from Buhari to President Tinubu, have borrowed.”
Former Vice President Atiku Abubakar also condemned the borrowing plan, saying there is no transparency. “What impact have those funds had? Because things have not improved,” said Atiku’s media aide, Paul Ibe. “This money may end up in the pockets of government officials and their allies.”
Debo Adeniran of the Centre for Accountability and Open Leadership added, “It’s not necessary for Nigeria to keep borrowing. We have enough resources. Unless we use loans wisely, they only increase our problems.”