NewStats: 3,263,526 , 8,180,433 topics. Date: Friday, 06 June 2025 at 11:10 AM 1a3u5a

President Bola Tinubu’s fresh request to the National Assembly to approve new external loans totalling $24.14 billion is tiresome.

Once again, it raises concerns that Nigeria is hurtling towards a fiscal precipice, with public debt increasing at an alarming rate even as government revenues show signs of recovery.

The proposed loans could balloon Nigeria’s total public debt to an astounding N182.91 trillion (approximately $69.92 billion) by 2026.

This request follows a 52.7 per cent surge in external debt and a 48.58 per cent year-on-year increase in total debt in 2024, driven by a combination of relentless borrowing, a steep depreciation of the naira, and insufficient financial governance.



The numbers paint a stark picture. At the current exchange rate of N1,586.15 to the dollar (as of 30 May), the proposed new loans would add N38.28 trillion to Nigeria’s debt stock, representing a 26.43 per cent jump from the country’s already daunting N144.67 trillion debt as of December 2024.

Tinubu explained that the external borrowing plan forms part of the 2025–2026 rolling borrowing programme and is aimed at ing key sectors: infrastructure, agriculture, healthcare, education, water resources, security, and public finance reforms.

He noted that the projects covered by the plan had undergone technical and economic appraisals and were selected for their potential to stimulate growth, generate jobs, and improve public service delivery.


However, the underlying fiscal reality is that debt servicing now consumes a lion’s share of national resources, leaving little room for meaningful capital investment.

In 2024 alone, the naira’s collapse inflated the country’s external debt by 83.89 per cent, transforming what should be manageable currency risks into looming fiscal crises.

The situation is further complicated by an impending $1.11 billion Eurobond repayment due in November 2025, which threatens to deplete the country’s foreign reserves.

There are concerns that the country’s debt-to-GDP ratio, once a point of relative comfort, has surged to 52.52 per cent, breaching the government’s own 40 per cent threshold. This could trigger sovereign credit downgrades and spook investors.

Nigeria’s debt trajectory has trended upwards over time. The Federal Government’s borrowings increased by 658 per cent between 1999 and 2021, from N3.55 trillion to N26.91 trillion, according to BudgIT.

Under former President Muhammadu Buhari’s istration, foreign debt increased by more than 291 per cent.

In May 2023, Nigeria’s public debt stood at N87.38 trillion (approximately $55.2 billion), but it rose rapidly to N144.67 trillion (a 60.3 per cent increase) by the end of 2024, equivalent to approximately N629,000 per person.


The 2025 budget reflects a fiscal deficit of N13.08 trillion, constituting approximately 38 per cent of the Federal Government’s revenues, 3.87 per cent of estimated GDP, and 23 per cent of total expenditure, alongside a projected debt servicing obligation of N14.32 trillion.

The African Development Bank flagged Nigeria’s rising debt costs a week ago, stating that the country is projected to spend 75 per cent of its revenues on interest payments in 2025.

This debt spiral is made even more dangerous by a glaring deficit in ability. Past borrowings have failed to deliver quality schools, healthcare facilities, roads, rail, and power infrastructure.

Scepticism about the government’s borrowing spree is fuelled by a lack of transparency and persistent questions about the use of previous loans.

Budget implementation reports have not been published since the second quarter of 2024, leaving the public and watchdog organisations in the dark about how borrowed funds are being spent.


The $3.4 billion loan secured from the IMF at the height of the COVID-19 crisis is shrouded in mystery, with no comprehensive ing provided to date.

Given these realities, Nigeria cannot continue to rely on debt-based funding as its primary development strategy. Pivoting towards asset-based solutions and greater private sector involvement offers a path out of the current quagmire.

The NNPC is sitting on $300 billion in assets. Given its long history of inefficiency, a substantial divestment and complete sale of its problematic refineries is overdue. This can raise cash for infrastructure and onboard private investors to help give the company new energy and direction. Other assets, such as Ajaokuta Steel, should be sold without delay.

The Asset Management Corporation of Nigeria must renew efforts to recover N4 trillion in delinquent debt acquired from banks at the government’s expense.

The government’s proposed $2 billion domestic dollar bond, if managed prudently, could deepen local capital markets and reduce dependence on volatile external funding.

The tax reforms provide opportunities to mobilise domestic financial resources more effectively and move the tax-to-GDP ratio to the target of 18 per cent, up from the 13.5 per cent cited by Tinubu in his midterm report. The target implementation date of July is just a month away. Parliament should speed up the age process.

The recent rebound in oil production to 1.5 million barrels per day in April offers some revenue upside, but this is no windfall as crude prices remain volatile, and forward crude sales, estimated at $21.5 billion since 2019, have maturity dates extending as far as 2034.

In seeking to assuage fears, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, assured last week that the istration is considering a self-financing infrastructure model. This model will see major national projects like ports, roads, and solar power plants concessioned to private operators, with proceeds used to defray project-related debt.

He pointed to expansion plans for Nigeria’s ports and solar projects as examples of revenue-generating initiatives that will bring in more business and charges to help offset loan costs. This thinking is welcome, but it is private sector participation that can bring discipline, innovation, and ability.

India, China, Indonesia, the Philippines, and Malaysia have developed alternative models for infrastructure funding, including project finance, PPPs, private equity, corporate bonds, and sukuk, tailored to suit their specific needs.

To bridge Nigeria’s estimated $3 trillion infrastructure deficit in the long term, firm legal guarantees and fully transparent concession will be required to attract private capital, especially from offshore entities.

Lack of transparency, inadequate risk assessment, and poor stakeholder engagement led to the failure of the landmark Lekki-Epe Expressway concession. The MM2 Airport concession was not fully implemented, with the hospitality components suspended due to legal wranglings.

There is little clarity around the Infrastructure Tax Credit Scheme, designed to attract private capital for the construction of nine major highways at a cost of N1.5 trillion. Nigeria must substantially de-risk the investment climate to attract capital inflows.

Ultimately, fiscal discipline must become a national imperative. The government cannot justify further borrowing despite its shrinking fiscal space while ing a bloated cabinet, duplicative ministries, departments, and agencies, a high-maintenance legislature, multitudes of political aides at national and sub-national levels, needless foreign trips, mile-long motorcades, and other fripperies.

A zero-based budgeting system can ensure that every financial allocation is substantiated and aligned with national objectives.

Anti-corruption efforts must be ramped up to plug loopholes and leakages in public finances and ensure value for money in government spending.

The Federal Government needs to shed some weight and responsibilities by consolidating MDAs in line with the Steven Oronsaye report and pushing for fiscal federalism anchored on resource control and the concomitant realignment that will enable states to drive significant infrastructure development.

Regardless of attempts at justifying additional borrowing, planned or actual, the government must be acutely aware that Nigeria cannot afford to slip into an unsustainable debt crisis.

https://punchng.com/tinubu-chants-tiresome-borrowing-tune/

Everybody don tire jare, with the removal of fuel and FOREX scam subsidies, I expect the economy to run without any external loan.

Anyway, I still stand with JAGABAN

Here they come with another bunkum story

Hmmm

We need more funds


My pain is that we are not improving local capacities with these funds. Why must all major project be handled by an Oyinbo man. Why cant we have a Governor or President stick his neck to lift up local contractors and engineers?

Hehehe.

They need more fund to loot .

APC and borrowing is like 5n6. They told us they will continue from where Buhari stopped,we never knew it was for them to continue borrowing from where Buhari stopped borrowing.

According to their ers,the removal of subsidy will stop them from borrowing,but the borrowing is even getting worse after removing subsidy.

APC need money for the next election,so they will continue to borrow to fund their elections.

The one's I pity most are their on line ers,they do all the ing on empty stomach

Here we go again....

How has previous loans performed in of just utilization for the purpose(s) given for borrowing and positive impact on Nigeirans?

Tinubu explained that the external borrowing plan forms part of the 2025–2026 rolling borrowing programme and is aimed at ing key sectors: infrastructure, agriculture, healthcare, education, water resources, security, and public finance reforms.

It's very simple...... the money is for infrastructural development and public finance reforms..
But people who hates the government will make it seems like Tinubu is loaning the money from their bank ....

Ok

Oya borrow.

How? You don't want debt but you want progress and infrastructure. Is it magic?
You want 700km finished in 6months but no borrowing. Just inshaallah and cruise? Unserious people. BTW, it's a plan, not yet approved or borrowed. They've hardly borrowed $2billion in a year not to mention 20.

RichBoy247:
Everybody don tire jare, with the removal of fuel and FOREX scam subsidies, I expect the economy to run without any external loan.

Anyway, I still stand with JAGABAN

Why stand with the worst rogue in our political space

ManirBK:
Aug 28, 2023
The Federal Government says it has no intention to borrow from any local or foreign organisation with its removal of subsidy on petrol and exchange rate harmonisation.

The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun, revealed this at the end of the inaugural Federal Executive Council meeting on Monday in Abuja.

He said that the benefit of the subsidy removal would be ploughed back into various sectors aimed at boosting government revenue and improving the business environment for local and foreign investment.

Edun said that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long-term basis.

He reiterated the President Bola Tinubu-led istration’s desire to bring back the economy from the wood it has found itself over time.

https://www.vanguardngr.com/2023/08/fg-ends-borrowing-finance-minister/amp/

Tinubu has borrowed Nigerians' future away

Where is the billions of dollars they claim to save from subsidy removal?
Tinubu is the S.I. unit of failure in governance and istration.

As expected
A man with no vision and blueprints

Werey government. Some people dey borrow pose while some borrow use, what exactly is this government borrowing to do? Useful infrastructure we no see, electricity not tackled. Security zero,, fuel price hiked, exchange rate bad, inflation hypertensive. Food prices, unaffordable. This is the real definition of LABOUR IN VAIN.

Rŕ

Won binu Omo ologo ale

helinues:
Here they come with another bunkum story

up and grateful
Ready to go again to defend your employers in this new month
Don’t worry your 30k wages will be assured

When governance is premised on deceit, surely, it becomes a part way for a country to retrogress.

Lol. Maybe he doesn't have any other options

President Bola Tinubu is leading Nigeria straight into an economic death spiral. This latest $24.14 billion loan request is not fiscal strategy,it’s state-sponsored economic sabotage. At a time when debt service already consumes over 75% of national revenue, the government is borrowing like a sportybet addict on his fifth failed sure odd.

The Naira is collapsing. Public trust is evaporating. Infrastructure remains a mirage. Yet Tinubu’s cabinet balloons and his entourage travels like emperors. Revenue reforms are snail-paced, while debt surges like a tsunami. There’s no meaningful plan to expand the tax base, drive industrial output, or unlock the $300B worth of dormant national assets.

By 2026, Nigeria will owe N182.91 trillion. But where’s the return on past borrowings? Roads? Hospitals? Schools? No. Just Eurobond repayments, a broken FX market, and rising poverty.

Tinubu inherited a burning house and instead of water, he’s pouring kerosene. At this pace, he’ll leave Nigeria worse off than Buhari did, and that’s saying something.

RichBoy247:
Everybody don tire jare, with the removal of fuel and FOREX scam subsidies, I expect the economy to run without any external loan.

Anyway, I still stand with JAGABAN

I sorry for una

Tinubu has nothing to offer Nigeria and Nigerians tbvh

Isn't the debt too much?!

RichBoy247:
Everybody don tire jare, with the removal of fuel and FOREX scam subsidies, I expect the economy to run without any external loan.

Anyway, I still stand with JAGABAN

Your Jagaban is incompetent and clueless.

.