On Tuesday, November 19, President Bola Tinubu submitted a formal request to the National Assembly to approve an external loan of $2.2 billion. The proposal follows the Federal Executive Council’s endorsement of the borrowing plan on November 10, aimed at addressing a N9.7 trillion deficit in the 2024 budget.
In his letter to the National Assembly, President Tinubu highlighted the need for the loan, stating it was already embedded in the 2024 Appropriation Act. He emphasized that the funds would finance ongoing projects critical to national development.
The National Assembly swiftly approved the loan within 48 hours, with reports presented by the Senate and House committees affirming the necessity of the borrowing. The Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wammako, noted that the loan would support Nigeria’s debt management strategy, extend public debt maturity, and enhance external reserves.
Despite the legislative approval, the decision sparked widespread criticism. Former Vice President Atiku Abubakar condemned the move, citing concerns over Nigeria’s growing indebtedness, which has placed the country as the third most indebted nation to the International Development Association (IDA), according to a recent World Bank report.
Atiku questioned the rationale behind borrowing when the government claims record revenue collections, suggesting the loans stem more from corruption than developmental needs. He also criticized the unfavorable exchange rate used for the loan benchmark and warned of its adverse effects on the economy.
The Middle Belt Forum’s president, Dr. Pogu Bitrus, and other critics expressed similar sentiments, lamenting that borrowed funds were being used for recurrent expenses instead of revenue-generating capital projects. Bitrus called for fiscal discipline and a focus on local production to reduce dependence on loans.
Lawyer and politician Maxi Okwu also decried the rising debt profile, urging leaders to explore resource management and sustainable development strategies instead of recurring borrowing.
With Nigeria’s debt burden mounting, calls for transparency and accountability in managing public funds continue to grow.
I think Tinubu should focus on generating revenue internally instead of taking out more loans. Its time for a different approach.
Why should we trust Tinubu with more loans when the debt is already a concern? Is this the right move?
Why is Tinubu seeking more loans instead of focusing on reducing debt? Its a risky move that could backfire.
Why should we care about Tinubus loan when there are bigger issues at hand? Lets focus on real solutions.
Why cant Tinubu just ask his rich friends for the money instead of burdening the country with more debt? #JustSaying 🤷♂️
I dont get why Tinubu needs more money when there are already debt concerns. Is this loan really necessary? 🤔
Why is Tinubu taking out a loan while were drowning in debt? Maybe hes secretly funding a space mission. 🚀
Why not let Tinubu secure the loan? It could boost the economy and create opportunities. Debt concerns shouldnt hold us back.
Why should taxpayers foot the bill for Tinubus loans? Let him find other ways to fund his projects. #EnoughIsEnough
Taxpayers fund projects for the greater good, not just for one individuals benefit. #InvestingInOurFuture
I dont get why Tinubu needs more loans when there are so many other ways to generate revenue. Seems fishy.