SERAP Urges National Assembly to Reject Tinubu’s $24 Billion Loan Request, Citing Debt Crisis Concerns
The Socio-Economic Rights and Accountability Project (SERAP) has called on the National Assembly to reject the Federal Government’s request to borrow $24 billion, warning that the move would significantly worsen Nigeria’s already precarious debt situation. The advocacy group expressed deep concern over the economic implications of the proposed borrowing, describing it as unsustainable and not in the best interest of Nigerians.
In a statement released via its official X (formerly Twitter) account, SERAP emphasized the growing danger of Nigeria’s ballooning debt profile. It cautioned that approving the loan would push the country’s total public debt to an estimated ₦183 trillion—an amount it deemed “clearly not sustainable and not in the public interest.” The group added: “The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24 billion. The growing national debt is not sustainable and not in the public interest.”
SERAP also highlighted the dire implications of Nigeria’s debt servicing obligations. According to the group, a substantial portion of government revenue is already being channeled toward debt repayment, leaving insufficient resources for critical sectors such as education, healthcare, and infrastructure. This, it argued, hampers efforts to foster inclusive economic growth and meet essential public needs.
Nigeria’s public debt has escalated sharply in recent years. In 2024 alone, the total debt stock rose by 48.6%, climbing from ₦97.34 trillion in 2023 to ₦144.66 trillion. Of this amount, the Federal Government is responsible for 95% of the total, underscoring the central government’s dominant role in accumulating public debt.
The new borrowing plan, submitted by President Bola Ahmed Tinubu, includes a request for over $21.5 billion in external loans, equivalent to ₦33.39 trillion at the official exchange rate of ₦1,590 to the dollar. In addition to this, the government is seeking parliamentary approval for domestic bond issuances totaling ₦757.9 billion, primarily to address outstanding pension liabilities.
President Tinubu has defended the loan request as a strategic component of his administration’s medium-term borrowing plan for 2025–2026. He stated that the funds are intended to support key sectors including infrastructure, healthcare, education, water supply, national security, and employment generation. Furthermore, the administration argues that the borrowing would help mitigate the socio-economic fallout of the removal of fuel subsidies.
The overall financing request includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen in loans, in addition to a €65 million grant. According to Tinubu, the funds will be channeled into development projects across all 36 states of the federation and the Federal Capital Territory. Priority projects include rail network expansion, upgrades to healthcare infrastructure, and poverty alleviation programs aimed at improving livelihoods.
On the matter of pension-related borrowing, the President clarified that the proposed bond issuance has already received approval from the Federal Executive Council. He explained that the measure is intended to clear backlogs under the Contributory Pension Scheme. This, he said, would enhance the welfare of retirees, restore public confidence in the pension system, and inject much-needed liquidity into the domestic economy.
Despite these assurances, SERAP maintains that the risks of additional borrowing far outweigh the proposed benefits. The organization reiterated its appeal to lawmakers to exercise their oversight responsibility and prevent further escalation of the country’s debt crisis.
According to SERAP, sustainable economic development can only be achieved through prudent fiscal management and prioritization of revenue generation over excessive borrowing.