By Erasmus Ikhide
President Bola Ahmed Tinubu and the All Progressives Congress (APC) administration have asked a stunning $21.5 billion, €2.19 billion, and ¥15 billion loan, together with a €65 million grant, to allegedly stimulate growth and stabilise the economy. It’s mind-boggling that the president and his advisers are unaware that the borrowing spree will further compound Nigeria’s already fragile financial condition, given the national assembly’s hasty acceptance.
The President requested Senate approval for a $21.5 billion, €2.2 billion, and ¥15 billion proposal in May 2025, totalling approximately N38.525 trillion. The government’s justification is that the massive sum is intended to support initiatives and programs in 36 states and the FCT that focus on poverty alleviation, food security, job development, skill acquisition, and entrepreneurship.
In July 2023, the government borrowed $800 million from the World Bank and N1.28 trillion to offset fuel subsidy reduction. This was followed by a $3 billion AFREXIM loan in August 2023 and N4.8 trillion guaranteed by NNPC against future oil royalties to stabilise the currency. In November 2023, another $7.8 billion request was made, while N12.48 trillion was granted for infrastructure, health, education, and security.
Without relenting, the government’s domestic borrowing has reached an outrageously astounding level. Between June 2023 and May 2024, the administration raised N20.1 trillion in bonds and borrowed N757.98 billion from domestic investors to cover pension payments, as demanded in May 2025.
This was followed by $2 billion in domestic foreign currency bonds and another N3.2 trillion request this week. In December 2023, N7.3 trillion of loan securitisation was converted into long-term debt. The proposed loan package amounts to nearly N17.355 trillion, a massive sum that will further stress Nigeria’s economy. With a projected debt burden of N162.025 trillion, it is apparent that Tinubu’s administration is irresponsibly accruing debt without a clear plan for repayment, which is comparable to a time bomb ready to blow.
As usual, the Ministry of Finance has come out to defend the borrowing plan, citing long-term planning and budgetary sustainability. Many people believe the justifications listed above by the Ministry of Finance are hollow, despite the fact that the borrowed monies will be linked to growth-enhancing projects, given the lack of openness and accountability by successive governments that borrowed and stole such funds recklessly. Added to the latter scenario is the government’s habit of budgetary irresponsibility, which has pushed the country to the verge. The recent borrowing proposal is part of a larger pattern of fiscal irresponsibility during Tinubu’s administration. With a history of debt buildup and questionable economic decisions, it is unclear how this administration intends to handle its financial obligations.
The tragedy of Tinubu’s debt situation will be felt by regular Nigerians, who will suffer the brunt of debt payments and economic instability. As the government prioritises debt repayment over basic public services, Nigerians can only expect further suffering and economic hardships. It is time for Nigerians to demand more accountability and openness from their government. The National Assembly must carefully review this borrowing request and ensure that any loan agreements are in the best interests of the country. President Tinubu’s continuous disguised campaign for the 2027 presidential election is a major distraction to Nigerian governance. Nigerians deserve better than a government that recklessly generates debt without a clear strategy for the future.
Tinubu’s two-year debt crisis is a prescription for economic disaster, and Nigerians cannot afford to ignore the situation. The government must prioritise fiscal discipline, transparency, and accountability to ensure that any borrowing is reasonable and sustainable. Anything less will deepen Nigeria’s economic problems and tax future generations.
Erasmus Ikhide contributed this piece via: ikhideluckyerasmus@gmail.com
