By Deborah Nnamdi
The Socio-Economic Rights and Accountability Project (SERAP) has urged the National Assembly to reject President Bola Tinubu’s administration’s proposal to borrow $24 billion, cautioning that the loan would further aggravate Nigeria’s growing debt crisis.
In a statement shared on its official X account, the advocacy group warned that the new borrowing would push the country’s total debt to an estimated N183 trillion — a figure it called “clearly unsustainable and contrary to the public interest.”
“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24bn,” SERAP said. “The growing national debt is not sustainable and not in the public interest.”
The organization expressed concern that the burden of debt servicing was already consuming a substantial portion of government revenue and was not sustainable.
Nigeria’s total public debt is reportedly projected to exceed N180 trillion, following President Bola Tinubu’s fresh request to the National Assembly for approval to secure additional external and domestic loans amounting to N34.15 trillion.
In separate letters to both chambers of the National Assembly, President Bola Tinubu has requested approval for an external borrowing plan totaling over $21.5 billion—equivalent to ₦33.39 trillion at the official exchange rate of ₦1,590 per dollar. Additionally, he is seeking authorization to issue domestic bonds worth ₦757.9 billion to clear outstanding pension liabilities.
President Tinubu stated that the 2025–2026 borrowing plan targets key sectors such as infrastructure, healthcare, agriculture, education, water supply, security, and job creation. He emphasized that the loans are intended to mitigate the economic effects of the fuel subsidy removal.
The proposed loan package comprises $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant. Tinubu assured lawmakers that the funds would be directed toward development projects across the 36 states and the Federal Capital Territory (FCT), with particular emphasis on railway expansion, healthcare services, and poverty reduction.
Regarding pensions, the president explained that the proposed domestic bond issuance is aimed at clearing the backlog under the Contributory Pension Scheme (CPS). He attributed the arrears to years of revenue shortfalls and noted that the plan has already been approved by the Federal Executive Council (FEC). The initiative is expected to enhance retirees’ welfare, restore trust in the pension system, and inject liquidity into the economy.
Nigeria’s public debt has surged in recent years, rising by 48.6% in 2024 to ₦144.66 trillion, up from ₦97.34 trillion in 2023. The Federal Government accounts for 95% of the total debt.
