The Socio-Economic Rights and Accountability Project SERAP has called on the National Assembly to reject President Bola Tinubu’s fresh loan request amounting to $24 billion, warning that such borrowing would further deepen Nigeria’s already fragile debt situation.
In a statement posted on its official X account, SERAP expressed serious concern over the proposed loan, noting that it could push Nigeria’s total debt stock to an estimated N183 trillion—a level it described as “clearly not sustainable and not in the public interest.”
“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow \$24 billion. The growing national debt is not sustainable and not in the public interest,” the organisation said.
SERAP also raised alarm over the rising burden of debt servicing, warning that it is already consuming a significant portion of national revenue, further undermining the country’s fiscal stability.
The caution follows President Tinubu’s recent communication to both chambers of the National Assembly, requesting approval to secure new external and domestic loans totaling N34.15 trillion.
According to the president, the external borrowing plan includes over $21.5 billion—equivalent to N33.39 trillion at the official exchange rate of N1,590 per dollar. In addition, a domestic bond issuance of N757.9 billion has been proposed to offset longstanding pension liabilities.
President Tinubu stated that the 2025–2026 borrowing initiative targets key sectors such as infrastructure, healthcare, agriculture, education, water supply, national security, and job creation. The borrowing, he said, is aimed at cushioning the economic consequences of the removal of fuel subsidies.
The comprehensive loan package includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant. The president assured lawmakers that the funds will be allocated to critical development projects across all 36 states and the Federal Capital Territory, with a particular emphasis on rail infrastructure, healthcare delivery, and poverty reduction.
On the domestic front, the president noted that the proposed bond issuance is intended to clear backlogs under the Contributory Pension Scheme CPS. He explained that previous delays were due to revenue shortfalls, and added that the initiative—already approved by the Federal Executive Council FEC—would enhance retiree welfare, rebuild public confidence in the pension system, and help inject liquidity into the economy.
Nigeria’s public debt has ballooned in recent years, with figures rising by 48.6 percent in 2024 alone. The country’s total debt stock climbed from N97.34 trillion in 2023 to N144.66 trillion in 2024, with the Federal Government accounting for approximately 95 percent of the total burden.
The growing debt profile and the administration’s continuous borrowing plans have sparked nationwide debates, with stakeholders urging caution and demanding transparency in public finance management.
