In a letter that has since stirred fresh debates across the nation, President Bola Ahmed Tinubu submitted a new loan request to the National Assembly. The request, seeking appropriation for billions of dollars in loans to finance important infrastructure and social intervention programmes, is the government’s new medium-term borrowing strategy.
While no serious economist would challenge strategic borrowing for national development, Nigerians are no strangers to the scourge of reckless debt accumulation. From the pre-2006 debt forgiveness to the current issue of over ₦97 trillion public debt, the experience has been sobering. If truth must be admitted in good conscience by those vested with legislative power to approve the loan, Tinubu’s proposal thus deserves more than a rubber-stamp approval; it requires a national introspection.
The President assures that the loan will be utilized to fund power, rail, education, and health projects. As lofty as these aims may be, Nigerians remember such promises from previous administrations. Loans taken, but tangible effect nowhere near. From half-finished rail projects to poorly equipped hospitals, the record is anything but reassuring.
The National Assembly, as the conscience of the country, ought to go beyond party allegiance and subject it to searching scrutiny. What are the conditions of the loans? From whom we borrow? How are we keeping them accountable and in conformity? How do we achieve debt sustainability when debt servicing takes over more than 90% of our revenue? And how about the average Nigerian? As inflation continues to bite and naira value depreciates, every borrowed loan for which there are no readily clear, productive dividends consequently crashes on the masses.
The loan application, which is said to be part of a total 2022–2024 external borrowing plan, comes as government confidence in spending among the masses is at all-time lows. Citizens continue to grapple with the cost-of-living crunch, made worse by pulled subsidies and forex uncertainty. Increasing unemployment and shrinking basic amenities only raise questions about the true impact of previous borrowings.
The absence of detailed breakdowns and post-project audits continues to breed controversy and undermine public trust. Equally troubling is the government’s failure to conduct public hearings or consult key stakeholders before making such far-reaching financial decisions.
In a democracy, these kinds of financial matters of magnitude should not be left in the hands of the executive and legislature to determine in secret. Two arms which, in a more functional democracy, might have sufficed when determining the fate of the citizens, but again, this is Nigeria.
There must be inputs from civil society players, professional organizations, and economic professionals. The imperative of the day, though, is not just in the approval of additional funds, but in rethinking the borrowing culture that has mortgaged the future of the country on collateral with no apparent gain for the present.
