Lawmakers Question Nigeria’s Rising Debt as Tinubu Seeks $2.2 Billion Loan
A major showdown is brewing in Nigeria’s House of Representatives this week over President Bola Tinubu’s $2.2 billion (N1.77 trillion) loan request to address a N9.7 trillion budget deficit. The loan, already approved by the Senate, will be used to fund critical infrastructure projects across the country.
During Tuesday’s plenary session, Speaker Tajudeen Abbas read out the President’s letter seeking approval. With the House set to debate and vote on the matter later this week, the decision is expected to spark heated debate, according to a report by Punch Newspaper.
Deputy Spokesperson of the House, Congressman Philip Agbese, expressed confidence that the loan will be approved, stressing that it would fund capital projects and bring long-term benefits to Nigerians. Despite Nigeria’s rising public debt of N136 trillion, Agbese defended the loan, citing ongoing investments in infrastructure like roads, healthcare, and education.
However, opposition lawmakers are raising concerns. Kingsley Chinda, leader of the Minority Caucus, argued that borrowing should be the last resort, calling for more transparency on how the funds will be used.
“We no doubt provided for the executive to borrow in the 2024 budget, but it’s not automatic. Borrowing should not be the first resort. It should be the last option, particularly when borrowing with interest,” Chinda.
He continued; “What did we get as income, and how was it applied that we required borrowing? What efforts have we made to raise funds without borrowing and what are the results? Is the borrowing very necessary?”
Labour Party lawmaker Afam Oghene also questioned the growing debt burden, urging caution and demanding clarity on the loan’s allocation.
Supporters of President Bola Tinubu’s $2.2 million loan request are emphasizing its importance for funding critical infrastructure projects vital for Nigeria’s economic growth. Chike Okafor, an APC lawmaker from Imo State, defended the loan, arguing that Nigeria’s under-investment in key sectors like infrastructure and education has led to a widening deficit that borrowing can help address.
“To sustain economic growth, we need investments in critical infrastructure. Borrowing for such purposes is necessary when current revenues are inadequate,” Okafor said, adding that loans should be directed toward long-term development rather than recurrent expenditures.
