President Bola Ahmed Tinubu has formally requested the approval of the National Assembly to secure a fresh ₦1.15 trillion domestic loan, stirring mixed reactions among economists, lawmakers, and the general public. The proposed borrowing, according to government sources, is aimed at addressing Nigeria’s widening fiscal deficit, funding key infrastructure projects, and stabilizing the nation’s fragile economy amid global financial uncertainties.
The request, contained in a letter addressed to the Senate President and read during plenary on Tuesday, outlined the government’s intention to finance part of the 2025 national budget through additional borrowing from the domestic financial market. Tinubu emphasized that the funds are crucial for sustaining ongoing developmental programs and meeting revenue shortfalls that have persisted due to declining oil output, foreign exchange instability, and rising subsidy costs.
“This borrowing is a necessary step to ensure the continuity of critical government projects and to maintain economic stability,” the letter reportedly stated. “Nigeria’s commitment to fiscal discipline remains unwavering, and all borrowed funds will be channeled towards productive sectors capable of yielding tangible economic returns.”
However, the announcement has generated widespread debate among citizens and economic analysts who fear that the country’s debt profile, already above ₦97 trillion as of mid-2025, may worsen if new loans are not managed prudently. Critics argue that Nigeria’s debt service-to-revenue ratio remains one of the highest in Africa, with more than 70% of government earnings reportedly used to repay existing debts.
Dr. Kemi Adetunji, an economist at the University of Lagos, warned that while domestic borrowing may seem safer than external loans, it could crowd out private sector investments and drive up interest rates.
“When the government borrows heavily from the local market, it competes with businesses for available credit. This can make borrowing costlier for small and medium enterprises, which are the backbone of job creation,” she noted.
Nevertheless, supporters of the move argue that the new loan, if properly utilized, could breathe fresh life into Nigeria’s ailing infrastructure. Roads, railways, healthcare, and power projects—many of which have stalled due to lack of funds—are expected to benefit. The government also plans to channel a portion of the funds into social investment programs aimed at tackling poverty and reducing unemployment, especially among youth.
Finance Minister Wale Edun, while defending the proposal, said the administration remains committed to “responsible borrowing.” He assured that the funds will be strategically allocated to projects that directly stimulate economic growth and yield measurable outcomes.
“We are not borrowing to consume,” Edun insisted. “We are borrowing to build — to invest in the future of this nation.”
Meanwhile, opposition lawmakers have called for greater transparency and accountability in the management of loan proceeds. They demanded that the executive branch present a clear repayment plan and periodic reports on how the funds are utilized.
“Nigerians deserve to know how every kobo borrowed is spent,” Senator Enyinnaya Abaribe stated. “We cannot continue to borrow endlessly without seeing the promised impact on people’s lives.”
The debate also extends to the streets, where citizens are grappling with the realities of inflation, high food prices, and a depreciating naira. Many Nigerians have voiced concerns that additional borrowing could lead to more taxes or austerity measures in the near future.
Despite the concerns, some analysts acknowledge that strategic borrowing—if managed with transparency and efficiency—could help Nigeria bridge its infrastructure gap and accelerate recovery from recent economic shocks.
As the National Assembly deliberates on the ₦1.15 trillion request, the eyes of the nation remain fixed on Abuja. The decision, once made, could shape the trajectory of Nigeria’s economy for years to come—either as a bold step toward revitalization or another addition to an already mounting debt burden.
