- President Tinubu sought a N1.767 trillion loan to address Nigeria’s N9.17 trillion fiscal deficit for 2024
- Experts cautioned against escalating Nigeria's debt burden amid growing fiscal deficits
- TheRadar compiled reactions from the public following the announcement below
Nigerians have reacted after President Bola Tinubu submitted a request to the National Assembly for approval of a N1.767 trillion external loan. The loan aims to address a portion of the N9.17 trillion fiscal deficit in the country’s 2024 budget.
In his request, the president explained that the loan was necessary for financing the budgetary shortfall as part of the nation’s broader fiscal strategy.
The proposed external borrowing, which would contribute to the country's budgetary financing, has sparked concern among experts who cautioned against increasing Nigeria's debt burden.
Expert highlights Nigeria's fiscal deficit struggle
Clifford Egbomeade, a Public Affairs Analyst and Communications expert said the request highlights Nigeria’s ongoing struggle with fiscal deficits.
According to Egbomeade, “While external borrowing can provide immediate relief to budgetary constraints, Nigeria’s rising debt servicing costs—$3.58 billion in the first nine months of 2024, up 39.77% from 2023—underscore the increasing strain on public finances.
‘‘The devaluation of the naira has further exacerbated the real value of these obligations, making external loans costlier to repay in local currency.”
Speaking further, Egbomeade said, “It will largely depend on how effectively it is utilised. If the funds are channelled into productive sectors like infrastructure, healthcare, or education, they could stimulate economic growth, create jobs, and improve public services.
‘‘However, Nigeria’s history of fiscal mismanagement raises concerns about transparency and accountability in loan utilisation.
‘‘Without proper oversight, the loan could contribute to wasteful spending or fail to deliver the intended developmental outcomes, leaving the country burdened with even higher debt,” Egbomeade added.
Uwaleke calls for clear guidelines on loan repayment plan
Professor Uche Uwaleke, the president of the Association of Capital Market Academics of Nigeria (ACMAN), said, “The request is part of the borrowing plan contained in the 2024 budget and so in order.
‘‘However, there is a need to specify the projects to be financed, whether or not they are self-liquidating and how the loan will be repaid. This is necessary considering the country’s already huge debt burden.
‘‘Another concern I have is that the emphasis seems to be on Eurobonds which are non-concessional and very costly. I think more attention should be on the Sovereign Sukuk which are project-tied and a lot cheaper”.
Nigerians react to Tinubu’s loan Request
TheRadar compiled further reactions from the public below:
“Who will repay the loans ?,” King stated.
“Another loan without seeing any result of the previous loan,” Simplyunique reacted.
“Nigeria is accumulating more debt. Not even surprised. Although he is the greatest "hustler" in 🇳🇬, it is still unclear how 🇳🇬will repay the loan. However, we need not pass judgement; perhaps this time the funds are required to purchase more rice to feed his starving populace,” Jake Shaw stated.
“The borrowed money, what exactly have they done with it that the people can see and feel? What is wrong with the National Assembly? Why this too much borrowing with nothing to show for it? Is there really separation of powers in the Nigeria style of democracy? Dooms Day 🇳🇬,” Mr Victory C.O stated.
“Bring evidence”: Nigerians react to Tinubu’s claims of economic progress
Meanwhile, TheRadar earlier reported that President Tinubu claimed significant progress in economic reforms at the 30th Nigerian Economic Summit.
TheRadar compiled public reactions, indicating disagreement with the President's claims.