President Tinubu Government has denied fresh $24 billion loan request amid public backlash.
NewsOnline Nigeria reports that the Presidency has dismissed widespread reports claiming that President Bola Tinubu is seeking a new $24 billion loan, clarifying that what was sent to the National Assembly is not an immediate borrowing request, but part of a statutory three-year borrowing plan.
This clarification comes amid rising criticism from opposition parties, economic experts, and concerned citizens, who warned that the proposed plan could skyrocket Nigeria’s public debt profile from ₦144.67 trillion at the end of 2024 to an alarming ₦182.91 trillion by 2026.
Speaking on the talk show “Real Talk With Kike”, Tope Ajayi, the Senior Special Assistant to the President on Media, stated unequivocally that:
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“The administration is not borrowing $24 or $21 billion. What the President submitted is a borrowing framework required under the Fiscal Responsibility Act. It includes potential borrowings by federal, state governments, and the FCT over three years.”
Ajayi emphasized that only the President is authorized to borrow externally, and states’ external loan components are simply consolidated under the federal umbrella for legislative approval.
Despite the clarification, the proposed borrowing plan has ignited fears of a potential debt trap, with critics arguing that submitting such a large borrowing projection amid growing inflation, currency devaluation, and economic hardship sends the wrong signal to global markets and local investors.
Ajayi attempted to ease these concerns by noting that:
“A plan does not mean immediate borrowing. It is designed for transparency and long-term fiscal planning. Actual borrowing is subject to legislative approval and based on evolving financial needs.”
Opposition Reacts: Nigeria’s Debt Burden Is Already Too Heavy
Opposition leaders have slammed the move, warning that adding another $24 billion to Nigeria’s already massive debt stock, regardless of whether it is immediate or staggered risks crippling the nation’s future.
They point to existing repayments, such as the recently settled $3.4 billion IMF COVID-19 loan and a ₦300 billion Sukuk Islamic bond, as evidence that the country is already overburdened by debt.
Fuel Subsidy Removal and Debt Repayment: A Double-Edged Sword
Ajayi credited the removal of fuel subsidies as a major reason why both federal and state governments are now able to service debts and fund critical infrastructure projects. He stated that:
“Savings from subsidy removal have enabled states to pay salaries, fund projects, and service debts. These include both foreign and local loans.”
However, critics argue that subsidy removal has worsened living conditions for ordinary Nigerians, and channeling those funds into debt repayments rather than direct social interventions could deepen economic inequality.
