President Bola Ahmed Tinubu and the All Progressives Congress’ (APC) administration have requested a staggering $21.5 billion, €2.19 billion, and ¥15 billion loan, alongside a €65 million grant, to supposedly drive growth and stabilize the economy. It’s mind-numbing that the president and his minders are not aware that the borrowing spree will only exacerbate Nigeria’s already precarious debt situation with the national assembly’s haphazard approval.
The President has sought the Senate’s approval for a $21.5 billion, €2.2 billion, ¥15 billion request in this month of May 2025, with a total amount approximating N38.525 trillion. The government alibi is that the humongous amount is meant to support projects and programs across 36 states and the FCT, focusing on poverty reduction, food security, job creation, skill acquisition, and entrepreneurship.
In July 2023, the government borrowed
$800 million from the World Bank and N1.28 trillion to cushion fuel subsidy removal effects, followed by additional
$3 billion AFREXIM Loan in August 2023 and N4.8 trillion secured by NNPC against future oil royalties to stabilize the naira. Another request of $7.8 billion was made in November 2023 and N12.48 trillion for infrastructure, health, education, and security was received.
Without relenting, the government’s domestic borrowing has assumed an embarrassingly staggering dimension. Between June 2023 and May 2024, the administration raised N20.1 trillion in bonds and borrowed from domestic investors a total amount of N757.98 billion for pension liabilities, which it requested in May 2025 for bonds to clear pension debts under the Contributory Pension Scheme (CPS).
That was followed by $2 billion in foreign currency bonds in the domestic market and another request of N3.2 trillion this week. In December 2023, N7.3 trillion in ways and means loan securitization was converted into long-term debt.
The proposed loan package is equivalent to approximately N17.355 trillion, a colossal amount that will further burden Nigeria’s economy. With a projected debt burden of N162.025 trillion, it’s clear that Tinubu’s administration is recklessly accumulating debt without a clear plan for repayment, and it’s tantamount to a time bomb waiting to explode.
As usual, the Ministry of Finance has risen to defend the borrowing plan, citing long-term planning and fiscal sustainability. Many believe the reasons cited above by the Ministry of Finance are hollow, despite the fact that the borrowed funds will be tied to growth-enhancing projects, given the lack of transparency and accountability by successive governments that borrowed and such funds were looted with reckless abandon.
Added to the latter scenario is the government’s pattern of fiscal irresponsibility that has driven the nation to the brink. This latest borrowing request is part of a broader pattern of fiscal irresponsibility under Tinubu’s administration. With a history of debt accumulation and questionable economic decisions, it’s unclear how this administration plans to manage its debt obligations.
The tragedy of Tinubu’s debt dilemma will be felt by ordinary Nigerians, who will bear the brunt of debt repayment and economic instability. As the government prioritizes debt servicing over essential public services, Nigerians can only expect further hardship and economic woes.
It’s time for Nigerians to demand greater accountability and transparency from their government. The National Assembly must scrutinize this borrowing request and ensure that any loan agreements are in the best interest of the country. The ongoing veiled campaign by President Tinubu for the 2027 presidential elections is a great distraction to governance in Nigeria.
Nigerians deserve better than a government that recklessly accumulates debt without a clear plan for the future.
Tinubu’s two-year debt dilemma is a recipe for economic woes, and Nigerians cannot afford to ignore it. The government must prioritize fiscal responsibility, transparency, and accountability to ensure that any borrowing is done in a responsible and sustainable manner. Anything less will only exacerbate Nigeria’s economic challenges and burden future generations.
Erasmus Ikhide contributed this piece via: ikhideluckyerasmus@gmail.com
