By Cajetan Mmuta, Nathaniel Zaccheaus, David Eze, Anthony Otaru, and Ben Adoga
A fresh wave of controversy has erupted over the Senate’s recent approval of President Bola Tinubu’s ₦21 trillion loan request, as financial experts, civil society voices, and opposition figures sound alarm bells over Nigeria’s swelling debt profile.
While lawmakers and government officials insist the borrowing plan is vital for national development and infrastructure renewal, critics fear it is another plunge into a worsening debt trap that future generations will be forced to bear.
Approved last Tuesday during plenary, the sweeping loan package gives the Federal Government the go-ahead to access over $21.19 billion in external loans, £4 billion, €15 billion, and $65 million in grants, alongside domestic borrowing through government bonds and other instruments.
The administration says the funds will finance critical capital projects, settle outstanding pension liabilities, and drive economic growth under the 2025–2026 fiscal framework.
However, in a nation where public debt has already surged beyond ₦144 trillion—and is projected to cross ₦180 trillion in the short term—the move has triggered furious debate.
Analysts warn that unchecked borrowing could imperil Nigeria’s fiscal stability, saddle the country with long-term repayment burdens, and ultimately erode its economic sovereignty.
*It raises hope for accelerated development, lawmakers defend action
On the other side of the aisle, ruling party lawmakers and officials are defending the borrowing plan as a strategic and forward-looking measure.
Senator Victor Umeh (LP, Anambra Central) said the allocation of $3 billion to the Port Harcourt–Maiduguri rail line was long overdue.
“The Eastern Corridor has been neglected for decades. This is a historic opportunity for inclusion and development,” Umeh said.
Chairman of the All Progressives Congress in Cross River State, Chief Ogar Eba, said the Lagos–Calabar highway, with $700 million earmarked, would transform the South-South.
“It will open up trade routes, boost commerce, and create thousands of jobs. This is how development begins,” he noted.
Senator Jimoh Ibrahim (APC, Ondo South) called for even bolder initiatives.
“Let’s think like Dubai. Launch a 10-year national bond. Raise $100 billion and invest in infrastructure,” he said. “Piecemeal loans won’t cut it.”
Hon. Chike Okafor (APC, Imo State) offered a conditional endorsement.
“I support loans—when they’re for capital projects. We must stop borrowing to fund consumption. Build bridges, not banquet halls.”
Finance and Budget ministers, Wale Edun and Atiku Bagudu, also endorsed the plan.
“Borrowing is integral to our budgetary process,” said Edun. “Even with improved revenue, our obligations are high. We must fill the gap.”
Bagudu emphasised alignment with long-term goals.
“This borrowing fits into our Agenda 2050 strategy. We want a per capita GDP of $33,000. That requires investment now,” he stated.
Minister of Works, David Umahi, painted a stark picture of Nigeria’s infrastructure challenges.
“We inherited over 2,000 uncompleted projects worth ₦13 trillion. We can’t fix this with budget allocations alone,” he said. “Borrowing is not a luxury—it’s an obligation.”
Umahi made a passionate plea, “When someone tries to put money in your pocket, and you call him a thief, that’s unfair. Let’s work together to build Nigeria.”
*Opposition disagrees, says it’s bad for Nigeria
Renowned political economist and public affairs commentator Prof Pat Utomi described the Senate’s endorsement as reckless and morally bankrupt.
“We are experiencing a moral crisis in governance,” Utomi charged. “The Senate has now become a conveyor belt for economic ruin. Loans are being approved with no serious plan for repayment, no growth strategy, and no transparency.”
He said the pattern of borrowing to fund recurrent obligations like pension liabilities amounted to “a double tragedy—borrowing to pay loans you misused,” warning that, “Thirty years from now, our children will read about this Senate as the one that auctioned Nigeria’s sovereignty.”
Chairman of the International Society for Civil Liberties and Rule of Law, Comrade Emeka Umeagbalasi, was even blunter.
“Between May 2023 and now, Tinubu has borrowed nearly ₦90 trillion. That’s just shy of the ₦75 trillion Buhari borrowed in eight years. At this rate, we’ll hit ₦400 trillion by 2027.”
He lamented that no tangible outcomes have followed these massive borrowings, as basic amenities like electricity, food, and transportation remain out of reach for many Nigerians.
“Where are the results? Where are the projects?” he asked. “Nobody knows the conditions tied to these loans. We don’t know the interest rates or repayment plans. The whole process lacks transparency.”
Senator Abdul Ningi (PDP, Bauchi Central) also raised alarm over what he termed “blind borrowing.”
“The loan request came without a detailed breakdown. How much is going to each ministry? What are the repayment timelines? We are lawmakers, not rubber stamps,” he said.
Ningi demanded value-for-money audits and a halt to what he described as a troubling trend of piling debt on people experiencing poverty to finance elite privileges.
Outside the National Assembly, experts, activists, and ordinary Nigerians are increasingly worried that another borrowing binge may spell doom for the country’s already fragile economy.
A development economist at Olabisi Onabanjo University, Prof Sheriffdeen Tella, labelled Nigeria’s borrowing culture “irrational.”
“In a normal economy, loans bridge deficits or fund productive projects. In Nigeria, borrowing is a way of life,” he said. “Over 50% of our revenues go to debt servicing—before paying salaries or funding education. It’s insane.”
Executive Director of the Centre for Fiscal Transparency, Dr Aisha Bello, urged the Tinubu administration to break away from the “repeating cycle of opaque procurement and abandoned projects.”
“Every kobo must be tracked,” she said. “The National Assembly should create a public loan expenditure audit committee, including civil society watchdogs.”
CISLAC Executive Director, Auwal Musa Rafsanjani, criticised the borrowing spree as economically dangerous and socially insensitive.
“The funds are often looted and returned to the countries that gave the loans. It’s a cycle of economic enslavement,” he said. “People are hungry and hopeless. How do you tell a starving person to repay loans that built nothing?”
An Abuja-based activist, Yusuf Sani, questioned the government’s credibility.
“We removed subsidies, increased taxes. Where is the money? Why are we still borrowing?” he asked. “Cut the First Lady’s budget. Cut National Assembly waste. Borrowing has become a habit, not a necessity.”
In the grassroots, the backlash is visceral.
A Gudu Market trader, Mama Chidinma, voiced her frustration.
“Since this government came, everything has got worse. Beans is ₦1,500 per measure. Garri is like gold. No light. Fuel is ₦1,000. And they are borrowing again? Who is eating this money?”
