The Nigerian government’s persistent reliance on borrowing, exemplified by the newly proposed $24.14 billion foreign loan request, raises deep concerns about the country’s fiscal bearing and economic stability.
Development Diaries reports that President Bola Tinubu recently requested the National Assembly’s approval to secure fresh foreign loans amounting to about $24.14 billion.
According to media reports, the proposed borrowing would add approximately N38.24trillion to the existing debt stock, potentially pushing Nigeria’s total public debt from N144.67trillion at the end of 2024 to over N182.91 trillion by 2026, at the current official exchange rate of N1,583.74/$1.
While borrowing for development is not exactly negative, the absence of clear accountability and measurable impact from previous loans undermines public trust.
The federal government’s reliance on borrowing without clear accountability or tangible results is condemnable.
Since the end of 2023, Nigeria’s public debt has grown at an alarming rate, rising from N97.34tn to N144.67tn by the end of 2024, and could now surpass N182tn if the new borrowing plan is approved.
This rapid escalation in debt, unaccompanied by visible improvements in infrastructure, social services, or economic wellbeing, paints a troubling picture.
The federal government has continued to defend its borrowing as necessary to finance key sectors such as infrastructure, healthcare, education, and agriculture.
However, Nigerians are yet to see the promised transformation in these sectors, despite repeated assurances and billions of dollars in loans.
Roads remain deplorable, the health sector is underfunded, schools are poorly equipped and socio economic issues remain unadressed.
Without transparent and independently verified data on how borrowed funds are utilised, the government’s narrative loses credibility.
More importantly, this pattern of opaque spending raises red flags about corruption and inefficiency.
A major concern is the growing debt service burden, which already surpasses capital expenditure in the national budget. This means the country is spending more to repay debt than to invest in its own development.
Such a fiscal imbalance restricts the government’s ability to address pressing socio-economic issues like unemployment, inflation, and insecurity.
The risk is that Nigeria could enter a debt trap, borrowing more just to service existing obligations, without ever building the productive capacity needed to grow out of the debt. This is not just unsustainable; it is economically dangerous.
Equally worrying is the erosion of institutional checks and balances, particularly in the role of the National Assembly.
When lawmakers declare in advance that they will approve any request from the executive, they effectively abandon their oversight function.
This rubber-stamp approach allows for unchecked accumulation of debt, with no assurance that the money will be used effectively.
Civil society and opposition voices have rightfully questioned the wisdom of continued borrowing in a context of poor fiscal discipline and minimal results from past loans.
Development Diaries calls on President Tinubu to reconsider the government’s debt strategy. Nigerians are calling for a transparent and accountable borrowing framework that includes detailed public disclosures on loan utilisation, clear performance indicators, and independent audits.
Also, the president should prioritise economic reforms that expand Nigeria’s revenue base and cut down wasteful expenditure.
The time for vague assurances is over, what is needed now is visible, measurable impact. The government must show that it is borrowing not just to survive, but to build a future that is inclusive, sustainable, and truly beneficial to the Nigerian people.
