SERAP Warns National Assembly to Reject Tinubu’s $24 Billion Borrowing Request Amid Nigeria’s Mounting Debt Crisis
The Socio-Economic Rights and Accountability Project (SERAP), a prominent Nigerian advocacy group dedicated to promoting transparency and good governance, has issued a strong warning to the National Assembly regarding the Tinubu administration’s recent request to borrow a staggering $24 billion. According to SERAP, this proposed borrowing will dangerously deepen Nigeria’s already critical debt crisis and jeopardize the country’s long-term economic stability.
In a statement published on SERAP’s official X (formerly Twitter) account, the organization explicitly called on lawmakers to reject the borrowing request, emphasizing that the move would push Nigeria’s total debt stock to an unsustainable level estimated at ₦183 trillion. SERAP described this looming debt figure as “clearly not sustainable and not in the public interest.”
SERAP’s Position on Nigeria’s Growing Debt Burden
“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24 billion,” the advocacy group stated firmly. It added that the “growing national debt is not sustainable and not in the public interest.”
SERAP’s concern is rooted in the alarming reality that Nigeria’s debt servicing obligations are already consuming a large chunk of government revenue. This leaves very limited resources available for essential public investments in critical sectors such as healthcare, education, infrastructure, and social welfare programs. The group fears that additional borrowing on this scale would only exacerbate this trend, creating a vicious cycle of debt dependency.
Current Debt Projections: Nigeria’s Public Debt Surpasses ₦180 Trillion
Nigeria’s total public debt is projected to soar beyond ₦180 trillion following President Bola Tinubu’s latest borrowing plan. The proposal includes over $21.5 billion in external loans, which, at the official exchange rate of ₦1,590 to the US dollar, translates to roughly ₦33.39 trillion. Alongside these foreign loans, the administration is seeking approval from the National Assembly to issue domestic bonds worth ₦757.9 billion. This bond issuance aims specifically to address outstanding pension liabilities that have accumulated over time.
President Tinubu’s Borrowing Plan: Objectives and Justifications
President Tinubu has defended the borrowing plan, explaining that the funds will be strategically directed toward sectors critical to Nigeria’s socio-economic development. According to the President, the 2025–2026 borrowing blueprint targets the following areas:
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Infrastructure development
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Healthcare system improvement
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Education sector enhancement
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Water supply projects
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Security upgrades
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Employment generation programs
Furthermore, Tinubu highlighted that the borrowing plan is designed to cushion the economic shocks arising from the recent removal of the fuel subsidy, a controversial but economically necessary policy adjustment.
The loan request is diverse, comprising multiple currencies:
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$21.5 billion USD
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€2.19 billion Euros
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15 billion Japanese Yen
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Plus, a €65 million grant
President Tinubu assured lawmakers that these funds would be utilized for development projects across all 36 states of Nigeria as well as the Federal Capital Territory (FCT). Special focus will be given to expanding rail networks, upgrading healthcare infrastructure, and rolling out poverty alleviation initiatives aimed at improving the living standards of vulnerable Nigerians.
Pension-Related Borrowing: Bond Issuance to Address Retiree Welfare
On the domestic borrowing front, the proposed bond issuance of ₦757.9 billion is meant to settle backlog payments under the Contributory Pension Scheme (CPS). President Tinubu stressed that this initiative has already received approval from the Federal Executive Council (FEC).
He pointed out that the pension-related bond issuance will bring several benefits, including:
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Improving retirees’ welfare by clearing overdue payments
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Restoring trust and confidence in the pension system
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Injecting much-needed liquidity into the Nigerian economy
The government’s approach indicates a recognition of the importance of addressing pension liabilities to avoid social unrest and ensure financial stability for retirees.
Nigeria’s Debt Crisis: Rising Trends and Alarming Statistics
The current borrowing proposal comes against the backdrop of a rapidly escalating public debt crisis in Nigeria. In recent years, the country’s total public debt has grown at an alarming rate, increasing by 48.6% in 2024 alone. According to official figures, Nigeria’s total debt stock rose from ₦97.34 trillion in 2023 to ₦144.66 trillion in 2024. Notably, the Federal Government holds about 95% of this debt, underscoring the weight of national borrowing.
The rapid debt accumulation raises serious concerns about Nigeria’s ability to meet its debt obligations without compromising essential government spending. With debt servicing costs consuming a large share of government revenue, critical investments in infrastructure, healthcare, education, and social safety nets are often sidelined.
Why SERAP is Urging the National Assembly to Take a Firm Stand
SERAP’s call for the National Assembly to reject the borrowing request stems from a commitment to safeguard Nigeria’s economic future and protect the interests of ordinary Nigerians. The advocacy group argues that continued borrowing on such a scale will lead Nigeria further down a path of unsustainable debt, which can trigger several negative consequences:
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Increased fiscal pressure that limits funding for development projects
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Greater risk of debt distress and potential default
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Economic instability affecting business confidence and investment
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Reduced ability to provide essential public services
The organization’s warning reflects a broader concern shared by many economists, civil society actors, and policy analysts that Nigeria must find more sustainable ways to finance its development needs rather than relying heavily on borrowing.
Conclusion
The unfolding situation with Nigeria’s debt is one that deserves serious attention. As President Tinubu seeks legislative approval for a massive borrowing plan of $24 billion to finance critical development projects and social programs, SERAP’s warning highlights the risks involved in expanding the country’s debt stock at this pace. The advocacy group’s message is clear: the National Assembly must act responsibly and reject any borrowing that is “not sustainable and not in the public interest.”
For Nigeria’s economy to thrive in the long term, it is crucial to balance the need for funding infrastructure and social programs with prudent fiscal management. The debate around this borrowing request will shape the economic landscape of Nigeria for years to come, making it an issue of paramount importance for all Nigerians and stakeholders.
