Since President Bola Ahmed Tinubu assumed workplace in Could 2023, Nigeria has launched into one among its most aggressive borrowing sprees in latest historical past. With over $7.2 billion already secured in overseas loans—primarily from the World {Bank}—and a $21.5 billion mortgage request pending approval, considerations are mounting over the nation’s rising debt burden and its long-term implications.
From social security nets and adolescent ladies’ schooling to energy sector restoration and {economic} stabilization, the mortgage profile underneath Tinubu cuts throughout varied sectors. However critics and economists alike are asking: at what price?
A Nearer Have a look at the Loans
The breakdown of loans since Could 2023 reveals a heavy dependence on World {Bank} funding:
$750 million (June 2023) for Energy Sector Restoration
$500 million (June 2023) for Ladies Empowerment
$800 million (July 2023) for Social Security Nets
$700 million (September 2023) for Adolescent Women’ Schooling
$2.25 billion (June 2024) for {Economic} Stabilization
$1.57 billion (September 2024) for Well being, Schooling, and Energy
$632 million (March 2025) for Vitamin and Schooling
This brings the full to $7.2 billion, with further loans from the African Growth {Bank} ($500 million) and different growth companions into account.
In Could 2025, the administration submitted a $21.5 billion exterior borrowing request to the Nationwide Meeting. The funding is anticipated to assist infrastructure, renewable power, and digital transformation initiatives.
Who Is Lending, and Who Is Owed?
To date, the World {Bank} has been the only largest supply of overseas loans for Nigeria underneath Tinubu, signaling a shift from the previous reliance on Chinese language and industrial lenders. This displays the administration’s tilt towards concessional funding, which frequently comes with decrease rates of interest however stringent reform situations.
No confirmed loans have been recorded from the IMF, China, or Paris Membership nations throughout this era, though discussions are reportedly ongoing.
{Economic} Fallout: Can Nigeria Maintain This Debt?
The query isn’t whether or not loans are essential—many creating nations borrow to fund development—however whether or not the borrowing is strategic and sustainable.
In line with Debt Administration Workplace (DMO), complete public debt rose to over N97 trillion by Q1 2025. Debt servicing now consumes greater than 70% of Nigeria’s income, leaving little room for capital initiatives or social investments.
“We’re coming into a debt entice the place we borrow to pay curiosity, to not develop,” says Lagos-based economist, Dr. Olatunji Musa.
Debt and the On a regular basis Nigerian
Whereas billions circulate in, the common Nigerian continues to battle hovering meals costs, gasoline prices, and depreciating naira worth. The elimination of gasoline subsidies and alternate charge reforms haven’t but delivered the {economic} revival promised by Tinubu’s Renewed Hope Agenda.
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This disconnect has sparked outrage throughout social media, with influencers and activists warning of a bleak {economic} future for the youth.
“How will unborn generations pay up these money owed? Nigeria should get up!” Kenyan pan-Africanist Prof. PLO Lumumba just lately requested, echoing rising regional concern over Nigeria’s fiscal path.
What Are We Borrowing For?
Some loans, similar to these focusing on ladies’ schooling or maternal vitamin, are commendable. However the opacity surrounding disbursement and implementation stays a significant fear.
Civil society organizations like BudgIT have repeatedly referred to as for full transparency, insisting that each greenback borrowed have to be tracked, audited, and linked to measurable outcomes.
The 2027 Issue: Is Politics Driving the Loans?
With Nigeria heading into one other election cycle in 2027, some analysts imagine the push to safe exterior financing will not be purely {economic}.
“This stage of borrowing might pave the way in which for politically motivated spending,” warns coverage analyst Hafsat Oladipo. “It dangers turning into a conflict chest quite than a growth technique.”
A Name for a Nationwide Debt Dialog
There isn’t a doubt that Nigeria wants funding for important growth. Nonetheless, the present tempo of borrowing, coupled with poor income era, creates an unsustainable cycle.
Consultants advocate the next steps:
Higher transparency on mortgage phrases and disbursement plans
Stronger oversight by the Nationwide Meeting
Fiscal reforms to spice up non-oil income
Public engagement on the true price of debt
Conclusion: Borrowing the Future
Tinubu’s authorities might argue that it’s borrowing to repair a damaged system. However except the funds are used effectively and transparently, Nigeria dangers mortgaging its future.
Because the loans pile up and reimbursement deadlines loom, the most important query stays: Are we investing in development, or just borrowing time?
