NDC faults Tinubu’s $7.7bn external loan request, raises debt concerns

The Nigeria Democratic Congress (NDC) has criticised President Bola Tinubu’s request for a fresh $7.7 billion external loan, expressing concern over the country’s rising debt burden and the implications of additional borrowing for the economy.

The opposition party questioned the government’s decision to seek further external financing, arguing that Nigerians need greater transparency and accountability in the management of public funds, particularly as the country continues to grapple with economic challenges.

The party’s criticism comes amid growing public debate over Nigeria’s borrowing strategy, debt sustainability and the government’s ability to meet its financial obligations.

In a statement issued on Thursday by the spokesperson of the NDC National Presidential Campaign Council, Dr Chiogo Constance Ikokwu, the party described the latest borrowing request as another example of what it called the President’s recurring borrowing spree.

Ikokwu reportedly characterised the development as a case of “one week, new loan”, warning that the country’s growing debt obligations could place an additional burden on future generations.

She also accused the National Assembly of failing to adequately scrutinise the Federal Government’s borrowing proposals, alleging that lawmakers had become a rubber-stamp legislature.

According to her, the increasing debt burden and concerns over the management of public resources make the 2027 general election particularly important for Nigerians.

The party urged citizens to participate actively in the January 16, 2027 election and vote for its presidential candidate, Peter Obi, and his running mate, Rabiu Musa Kwankwaso.

Ikokwu cited the November 4, 2026 elections in the United States as an example of how citizens could use their votes to influence political leadership.

She maintained that Nigerians should use the ballot to demand transparency, accountability and responsible management of public resources.

President Tinubu’s latest borrowing request, dated October 26, 2026, seeks approval to raise $7.707 billion, equivalent to approximately N10.79 trillion, to partly finance the 2026 budget deficit.

The request replaces an earlier proposal seeking approval to process external loans worth $20.52 billion and €1.045 billion.

According to the President’s letter to the National Assembly, the proposed borrowing forms part of the N29.2 trillion new borrowing provision in the 2026 Appropriation Act, which is intended to help finance an estimated N31.4 trillion budget deficit.

The President identified defence and security, transportation, agriculture, power, education and healthcare as some of the sectors expected to benefit from the proposed financing.

Following the presentation of the request, the Senate referred it to its Committee on Local and Foreign Debts for further scrutiny.

The proposed borrowing has generated renewed debate over Nigeria’s debt sustainability, the cost of servicing government loans and the need to ensure that borrowed funds deliver measurable economic benefits.