Wisdom Engraced
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The federal government’s plan to borrow over $21 billion for the 2025-2026 fiscal cycle has sparked divergent views among Nigerians. The Senate recently approved President Bola Tinubu’s external borrowing plan, which includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, a $65 million grant, and domestic borrowing through government bonds, totalling approximately N757 billion.
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According to the Debt Management Office (DMO), Nigeria’s total public debt climbed to N144.67 trillion ($94.23 billion) as of December 31, 2024, reflecting a significant increase of 48.58% compared to N97.34 trillion ($108.23 billion) recorded at the end of December 2023
Criticism and Concerns
Some Nigerians have expressed concerns over the government’s borrowing spree. Peter Obi, the presidential candidate of the Labour Party in the 2023 general election, lamented what he described as “reckless borrowing” by the current regime without accountability. “As our GDP before rebasing was about N269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of our previous GDP,” he said.
The African Democratic Congress (ADC) also condemned the Tinubu administration over what it called “fiscal vandalism”. “The African Democratic Congress (ADC) is deeply concerned by the Tinubu administration’s dangerous obsession with borrowing. What Nigerians are witnessing, following the approval of a fresh $21 billion in foreign loans, is nothing short of a calculated decision to mortgage the country’s future just to cover up the failures of today,” the party said.
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Jonathan Nwokpor
