Nigeria's Burden: ₦144 Trillion Debt Mounts as Tinubu Seeks Billions More

 

Nigeria President Tinubu seeks National Assembly approval for a massive $21.5 billion external loan and ₦758 billion in domestic bonds to cover "pension obligations." Nigeria’s public debt, already at a staggering ₦144 trillion (~$94 billion), is on track to surpass $100 billion if approved. 📈💰With soaring debt, skyrocketing debt servicing costs (₦13.12 trillion in 2024 alone), and little visible progress in infrastructure or social services, Nigerians are asking: Who is really benefiting from these loans? 😡 Critics, including opposition leaders like Atiku Abubakar, slam the borrowing as a "Ponzi scheme," accusing the government of mortgaging the nation’s future. Citizens on X express outrage, pointing to persistent hunger, insecurity, and lack of tangible projects despite years of borrowing. 

💸Tinubu’s administration claims the funds will address infrastructure deficits, stabilize the naira, and clear pension arrears, but skepticism runs high. With the IMF warning of a 100% debt service-to-revenue ratio by 2026, is Nigeria heading toward a debt trap?

See also: (In Nigeria) Segun Sowunmi Offers to Work with President Tinubu, Sparks Controversy And Backlash

Many Nigerians, like @UzomaCh and @TENIBEGILOJU202 on X, express fury over the lack of visible development despite massive borrowing. They highlight issues like hunger, poverty, and insecurity, questioning what the loans have achieved. For instance, @UzomaCh asks, “Which infrastructure? Name them,” emphasizing the absence of tangible outcomes.Skepticism About Beneficiaries: @MezieAbia’s post suggests that the loans benefit Tinubu’s political cronies rather than the public, reflecting a widespread belief that the funds are mismanaged or misallocated. 

Former Vice President Atiku Abubakar and the Peoples Redemption Party (PRP) have publicly condemned the borrowing plan, with Atiku calling it a “vicious cycle” that turns public finance into a Ponzi scheme. The PRP urges the National Assembly to reject the loan, arguing it worsens citizens’ economic plight.

Citizens and analysts, as noted in sources like Daily Trust and http://Legit.ng, worry about the debt service-to-revenue ratio, which hit over 90% in 2023 and could reach 100% by 2026, per the IMF. This leaves little room for social spending, fueling public discontent

Tinubu’s administration justifies the $21.5 billion external loan and ₦758 billion domestic bond as necessary to fund infrastructure, agriculture, health, education, and pension liabilities. 

However, the public’s trust is eroded by the rapid debt increase—₦56.6 trillion added since Tinubu took office in 2023—and the perception that funds are used for recurrent expenditure or political patronage rather than capital projects. The repayment of a $3.4 billion IMF loan in 2025 was celebrated by some, like Zainab Duke-Abiola, as a sign of fiscal responsibility, but others argue it’s overshadowed by new borrowing.