President Bola Tinubu's administration recently secured approval from the National Assembly for a $2.2 billion external loan.
This decision, aimed at addressing the 2024 budget deficit, has been met with mixed reactions across Nigeria and beyond.
The loan is intended to fund ongoing projects as outlined in the 2024 Appropriation Act.
However, critics argue that the borrowing spree is unnecessary, especially given the government's claims of record-high revenue collections.
Former Vice President Atiku Abubakar voiced his concerns, stating that the loan would "exact unbearable negative pressure on the economy." He further highlighted a World Bank report indicating Nigeria's position as the third most indebted country to the International Development Association (IDA).
The approval process was swift, with the National Assembly granting consent just 48 hours after President Tinubu's request. Aliyu Wammako, Chairman of the Senate Committee on Local and Foreign Debts, defended the decision, asserting that the loan is crucial for national growth and development.
"It will contribute to the implementation of the debt management strategy," he noted, emphasizing its role in reducing borrowing costs and increasing external reserves.
Despite these assurances, many Nigerians remain skeptical. Dr. Pogu Bitrus, president of the Middle Belt Forum, lamented that the loans are not being used for meaningful projects but rather for consumption. "We are funding recurrent and unnecessary expenditures, indebting generations yet unborn," he remarked.
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