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Experts condemn reckless borrowing, call for urgent fiscal responsibility, accountability
By Bianca Iboma-Emefu
President Bola Ahmed Tinubu has formally requested approval from Nigeria’s National Assembly for an external loan exceeding $21.5 billion (around N8.5 trillion).
The proposal includes $2.19 billion in grants and a plan to issue N757 billion in government bonds aimed at addressing escalating pension arrears. The president emphasised that this borrowing is crucial for funding essential sectors, including agriculture, education, infrastructure, and security.
Coinciding with this request, the Attorney-General of the Federation, Prince Lateef Fagbemi, revealed that anti-corruption agencies have recovered a staggering $967.5 billion and N277 billion in assets in 2024 alone. The recovered funds are reportedly invested in conditional cash transfers and infrastructure projects, reflecting a renewed commitment to financial transparency. To bolster accountability, the government also unveiled the National Central Database of Forfeited Assets and established regulations for automated management of proceeds of crime.
However, experts warn that if the loan is approved, Nigeria’s total debt will soar beyond N180 trillion, raising alarms about the country’s economic stability. Critics describe the continued borrowing as “mindless” and warn that Nigeria is sitting on a “ticking time bomb” that could explode at any moment. They question why, after recovering vast sums of stolen assets, the government is still resorting to borrowing at such an alarming rate.
Analysts and civil society advocates are calling for the Nigerian Senate to reject the loan request, urging an independent investigation into the utilisation of recovered looted funds. They emphasise the importance of transparency and accountability, proposing the establishment of a ‘Presidential Delivery Unit’ to provide clear updates on government revenue, asset recoveries, and project expenditures.
“The money recovered in 2024 alone exceeds the amount being sought through borrowing,” said Comrade Ademola Babatunde, Convener of the Youth Arise Movement. “Our roads, hospitals, and schools are in crisis, insecurity worsens, and unemployment remains high—yet our debt continues to skyrocket. This trajectory is unsustainable.”
Babatunde called on the National Assembly to halt the loan approval process, scrutinise the management of recovered assets, and ensure that funds allocated for development are properly utilised, rather than embezzled or misappropriated. He also urged the president to establish a finance-focused unit comprising reputable industry experts to critically evaluate the recovered funds and proposed projects.
“Nigeria’s leaders must be held accountable for how they spend our resources,” Babatunde emphasised. “It’s time to say no to reckless borrowing and prioritise transparency, responsible governance, and sustainable development for future generations.”
As the nation watches closely, the call for prudent financial management and accountability grows louder, underscoring the urgent need for Nigeria to steer away from a perilous debt spiral and focus on tangible, visible progress.