ASBON Warns Against Nigeria's $21.7 Billion Borrowing Plan

The Association of Small Business Owners of Nigeria (ASBON) has raised concerns regarding the federal government's proposed external borrowing plan of $21.7 billion. ASBON president, Dr Femi Egbesola, stated that while borrowing can be justified for productive infrastructure, Nigeria's weak revenue base raises debt sustainability issues.

President Bola Tinubu has requested the National Assembly to approve a supplementary borrowing plan of $20.52 billion and €1.045 billion for various projects, including power, transportation, and healthcare. The Senate has referred this request to its Committee on Local and Foreign Debts for scrutiny.

Egbesola warned that the proposed loans could increase Nigeria's debt stock by approximately N30 trillion, with total public debt already at N166.79 trillion as of June 30, 2026. He emphasized that the debt-service-to-revenue ratio is a critical indicator of financial health, urging the government to focus on revenue expansion and prioritize concessional loans for productive projects.