Tinubu’s $21.5bn Loan Request: Strategic Development or Another Debt Trap?
Nigeria’s Ministry of Finance is trying to calm nerves over President Bola Tinubu’s staggering $21.5 billion loan request, assuring the public that it won’t automatically worsen the nation’s already dire debt situation. But many Nigerians aren’t buying it and for good reason.
On May 27, Tinubu formally asked the National Assembly to approve a fresh round of external borrowing, while also seeking permission to issue N757.9 billion in bonds to settle outstanding pension liabilities money that should never have been delayed in the first place.
In a press statement, Mohammed Manga, director of public relations at the ministry, claimed the borrowing is part of a “Debt Rolling Plan” aimed at guiding sustainable borrowing rather than inflating debt irresponsibly. But critics argue that this “plan” sounds like fancy financial jargon masking more borrowing without accountability.
“It is not an automatic green light for increasing the debt burden,” the ministry insists.
But in a country where transparency is often just a buzzword, such assurances offer little comfort. In fact, many Nigerians are still waiting for clear explanations on how previous loans were spent. Infrastructure remains broken, electricity remains epileptic, and unemployment continues to soar.
Development Loans or Political Kickbacks?
The ministry says the loans will come from reputable development partners like the World Bank, AfDB, China EximBank, and the Islamic Development Bank. These are often concessional loans with long repayment periods. However, what matters most is not where the money comes from, but where it ends up.
In the past, similar loans have been announced with fanfare, only to vanish into bloated contracts, padded budgets, and corrupt procurement processes. Without a transparent and traceable spending plan, this loan could easily go the same route.
Pensions Used as Bait?
Another red flag is the plan to use part of the borrowing to pay pension arrears. This raises a disturbing question: Why borrow money to pay retirees what they are already owed? Is this a genuine welfare concern, or just an attempt to justify a bigger borrowing figure?
Critics say it’s shameful that pension liabilities funds meant for aging workers who gave their lives to public service are now being weaponized to secure more debt. It reflects not only fiscal recklessness but also gross administrative failure.
What Nigerians Really Want: Accountability, Not Announcements
The Ministry touts “fiscal discipline” and “sustainable debt,” but citizens want to see actual transparency, not just press releases. Where are the detailed breakdowns? Where is the public engagement beyond vague statements? Who monitors the spending? Who is held accountable when funds are misused?
It’s not enough to say the loans will go into “growth-enhancing projects” like agriculture, energy, and transportation. Nigerians have heard this song before. What’s needed is a system where every naira is tracked—and every official answerable.
Conclusion: Is Nigeria Borrowing Its Future Away?
While strategic borrowing isn’t inherently bad, Nigeria’s history of poor implementation, systemic corruption, and political interference makes every new loan a reason for concern. Without strict accountability, this $21.5 billion request may turn into just another chapter in Nigeria’s long history of debt without development.
Public trust is eroding. And unless there’s full transparency, this could be one more economic decision that leaves the people paying the price literally.
Reference
Tinubu’s $21.5bn Loan Request: Strategic Development or Another Debt Trap?