On Thursday, the National Assembly approved President Bola Ahmed Tinubu’s request for an external loan of N1.77 trillion ($2.2 billion).
This approval came after the committees on local and foreign debts in both the Senate and the House of Representatives presented their reports for consideration during plenary.
This decision raises Nigeria’s total debt to a record N136 trillion, marking a new peak in the country’s borrowing levels.
President Tinubu’s request, which was submitted as part of the 2024 Appropriation Act, was read out by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas during separate plenary sessions on Tuesday.
The loan approval has sparked criticism, particularly from former Vice President Atiku Abubakar, who expressed concern over the rising debt burden.
Atiku, who was the 2023 presidential candidate for the Peoples Democratic Party (PDP), argued that the current administration’s loans are exacerbating Nigeria’s economic woes.
He accused the National Assembly of enabling this borrowing spree and stated that the country is becoming increasingly overwhelmed by its debt.
He also referenced a recent World Bank report that placed Nigeria as the third most indebted nation to the International Development Association (IDA), which only adds to the troubling debt narrative.
Atiku further questioned the necessity of the loans, given President Tinubu’s earlier claims that record tax revenues from the Federal Inland Revenue Service (FIRS) and the Customs Service were being used to fund the national budget.
Atiku described the loans as a “burden” on the Nigerian populace, adding that their terms and implementation were not adequately scrutinized, thereby exerting undue pressure on the country’s economy.
