Nigerian senators have expressed concerns over the federal government’s borrowing despite claims of increased revenue collection under President Bola Tinubu’s administration. This follows the Senate’s approval of a $2.2 billion loan request to fund Nigeria’s 2024 budget deficit. Critics, including former Vice President Atiku Abubakar, argue that the country’s debt level, now at an all-time high of ₦136 trillion, is unsustainable and detrimental to the economy. He pointed out inconsistencies in revenue claims and questioned the necessity of further borrowing.
The Lagos Chamber of Commerce and Industry (LCCI) also warned that Nigeria’s growing debt burden poses significant risks to its financial stability, citing concerns about debt servicing costs overshadowing developmental spending.
Proponents of the borrowing, however, argue that it is necessary for infrastructure projects and aligning with Nigeria’s Debt Management Strategy, which seeks to extend the maturity of debt and increase external reserves.
