By Peace Udugba -The daily torch media
Nigeria’s Senate has approved a fresh $6 billion external borrowing request submitted by President Bola Tinubu, raising renewed concerns about the country’s rising debt profile, which currently stands at approximately $110.3 billion.
The approval followed deliberations by lawmakers during plenary, where the loan request was presented as part of the federal government’s broader strategy to finance critical infrastructure projects and support economic reforms. According to the executive, the funds are expected to be channeled into key sectors such as transportation, power, healthcare, and education.
Senate leaders defended the decision, noting that the borrowing aligns with Nigeria’s Medium-Term Expenditure Framework and Fiscal Strategy Paper. They argued that concessional loans from international financial institutions remain necessary to bridge the country’s infrastructure deficit and stimulate economic growth.
However, the approval has sparked mixed reactions among Nigerians and economic experts, many of whom have expressed concern over the sustainability of the nation’s debt. Critics warned that continued reliance on external borrowing could increase debt servicing obligations and place additional pressure on government revenues already strained by subsidy removals and currency fluctuations.
Supporters of the move, on the other hand, maintain that if properly managed, the loan could help boost productivity, create jobs, and improve living standards. They emphasize the importance of transparency, accountability, and efficient utilization of the borrowed funds to ensure tangible benefits for citizens.
Nigeria’s total public debt has risen steadily in recent years, driven by budget deficits and the need to fund large-scale development projects. Analysts say the key challenge lies not just in borrowing, but in ensuring that such funds are invested in projects that generate economic returns capable of repaying the loans.
As the government moves forward with its borrowing plans, attention will likely shift to implementation, with stakeholders calling for strict oversight to ensure that the funds are used effectively and do not further deepen the country’s fiscal vulnerabilities.
