President Tinubu’s has sent a request to Senate for an approval of additional $20.5 billion and €1.045 billion in external loans.
Nigerians deserve answers to questions about this loan request, regardless of political affiliation.
Borrowing is not bad. Governments borrow to build infrastructure, expand economies and create opportunities.
We certainly need urgent investment in electricity, transportation, healthcare, education and agriculture. The question is whether our borrowing has consistently delivered these benefits over time. We need not fear asking for accountability.
By June 2026, our public debt stood at approximately ₦166.8 trillion. Successive administrations contributed to this burden. Currency depreciation and other adjustments also increased its naira value.
Government have a lot to gain from explaining how previous loans were financed, how much lenders actually disbursed, which projects were completed and how those investments improved citizens’ lives.
Show citizens the roads, power plants, hospitals, schools and agricultural programmes loans were used for. Which are functioning? What measurable economic returns have they produced? How much do we still owe?
These are questions of accountability, not politics. Nigerians appreciate accountability.
Regarding that, it would be important to distinguish between loans approved, loans contracted, money disbursed and outstanding debt. Otherwise, we risk counting the same borrowing twice and exaggerating the figures. And, of course everbody will take those numbers to town.
Our debt-to-GDP ratio may appear manageable, but debt servicing now consumes a substantial share of government revenue, which leaves less money for essential services and exposes us to further pressure when the naira depreciates.
There’s no need to panic and start grandstanding for political expediency, and we should not also panic at every borrowing announcement. We shouldn’t also celebrate every loan approval as an achievement. It’s not. Its the successful outcomes of such loans we should celebrate.
The government must demonstrate this new borrowing will produce benefits greater than its financial cost, backed by transparent project budgets, implementation schedules and measurable outcomes.
We have every reason to ask difficult questions. Not because borrowing is necessarily wrong, but because decades of borrowing have not eliminated our most basic development deficits. And there is still poverty in the land.
The real measure of responsible borrowing is not how much money a government secures, but what it delivers, what citizens gain and what future generations must repay.
That is just the simple truth. And you can take that to the bank.
Meanwhile , Atiku Abubakar, presidential candidate of the African Democratic Congress (ADC), has urged the national assembly to withhold approval for President Bola Tinubu’s proposed external borrowing plan of $20.52 billion and €1.045 billion.
In a statement issued on Tuesday by Phrank Shaibu, director of strategic communication of the ADC presidential campaign council, Atiku questioned the timing and purpose of the proposed borrowing.
The former vice-president said the request vindicated his October 12 warning that Tinubu was preparing to borrow up to $20 billion for the Lagos-Calabar coastal highway.
