President Bola Tinubu’s proposed external borrowing plan of 20.52 billion dollars and 1.05 billion euros has sparked debate over the need to finance critical infrastructure and safeguard Nigeria’s long-term financial stability.
The President is seeking the Senate’s approval for the Federal Government’s 2026–2027 Supplementary External Borrowing Plan to fund major infrastructural and developmental projects across the country.
The request, conveyed in a letter read by Senate President Godswill Akpabio during plenary, has drawn mixed reactions from stakeholders, with some questioning the country’s rising debt burden and demanding greater accountability in the management of borrowed funds.
While critics insist that the government must demonstrate the impact of previous loans on the lives of Nigerians, supporters argue that external borrowing, when properly managed, can provide the resources needed to address the country’s infrastructure deficit and improve critical sectors such as transportation, power and road development.
A public affairs analyst, Olalekan Olajobi, who criticised the proposed borrowing plan, maintained that the Federal Government must be accountable for the debts incurred.
He also faulted the National Assembly, accusing lawmakers of failing to adequately scrutinise the executive’s borrowing requests.
However, an economist, Bankole Olaoluwa, supported the proposed borrowing, arguing that taking loans is not inherently wrong, provided the funds are properly utilised and accounted for.
Olaoluwa further explained that judicious utilisation of the proposed funds could promote socioeconomic development and improve infrastructure across the country
As the request awaits legislative consideration, attention is now focused on the National Assembly’s scrutiny of the borrowing terms, the projects to be financed and the government’s repayment strategy.
Orange FM reports that the debate underscores the need to balance development financing with transparency, accountability and the long-term sustainability of Nigeria’s public debt.
