President Bola Ahmed Tinubu has submitted a fresh request to the National Assembly for approval of foreign loans totaling over N40 trillion. The proposed borrowing plan includes $21.5 billion, €2.19 billion, ¥15 billion, and a $65 million grant, intended to finance critical infrastructure and stabilize Nigeria’s struggling economy. This comes as the country battles declining revenue, a weakening naira, and the exodus of foreign investors.
Tinubu’s economic reforms—such as the removal of fuel subsidies and exchange rate unification—were introduced to correct structural imbalances and encourage investment. However, they have also led to soaring inflation, increased cost of living, and widespread public discontent. Government officials argue that the loans are necessary to keep essential projects running and support key sectors like power, health, and transportation.
The move has drawn sharp criticism from opposition leaders and economists. Former Vice President Atiku Abubakar condemned the borrowing spree, warning it could lead Nigeria into a debt trap. Analysts stress that without a clear strategy for managing and utilizing the funds effectively, the country’s growing debt burden could cripple long-term growth and fiscal independence.
Some lawmakers have questioned the urgency of the loan request, citing improved performance by revenue-generating agencies like the Federal Inland Revenue Service and Nigeria Customs. They urge the government to focus on internal reforms and better resource management instead of repeated external borrowing.
Despite these concerns, the Tinubu administration remains firm, viewing the loan as a strategic response to Nigeria’s economic crisis. As the National Assembly deliberates, the nation watches closely, aware that the outcome could significantly shape its financial future.
