Tinubu's $21.7bn Loan Proposal Sparks Debt Concerns

President Bola Tinubu has proposed a $21.7 billion external borrowing plan, which includes $20.52 billion and €1.045 billion, aimed at financing projects under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan. This borrowing is intended to support investments in critical sectors such as power, transportation, healthcare, education, agriculture, water supply, security, and employment generation.

However, concerns have been raised about Nigeria's ability to manage additional debt, especially as public debt reached N166.79 trillion by June 2026, up from N87.37 trillion in June 2023. Experts like Ibrahim Bakare, a professor of economics at Lagos State University, have expressed worries about the government's increasing reliance on borrowing to fund an expanding budget of N68.3 trillion.

Eze Onyekpere, lead director of the Centre for Social Justice, emphasized the importance of how borrowed funds are spent, advocating for transparency and accountability regarding previous loans and their economic impacts.