Nigeria’s National Assembly is facing intense backlash as the country’s debt continues to skyrocket, reaching a staggering N138 trillion. This alarming figure has sparked widespread concern among Nigerians, who are demanding that the government take immediate action to address the crisis. National Assembly Faces Backlash as Nigeria’s Debt Climbs to N138tn
Experts and stakeholders have expressed concerns over the legislature’s failure to adequately scrutinise the country’s borrowing plans, warning of dire economic consequences.
The Senate and the House of Representatives granted their assent within 48 hours after President Tinubu sought approval for a $2.2 billion (N1.77 trillion) loan.
This follows a report presented by Aliyu Wamakko, the Chairman of the Senate Committee on Local and Foreign Debts. According to Tinubu, the loan is embedded in the 2024 fiscal year’s external borrowing plan.
Senate President Godswill Akpabio, while reading the President’s letter, described the request as integral to the administration’s fiscal strategy. However, critics argue that this rapid approval process exemplifies the National Assembly’s failure to conduct rigorous oversight.
As of June 2024, Nigeria’s total public debt stood at N134 trillion. With additional borrowings approved in July and November, the figure has risen to N138 trillion.
These loans include the securitisation of N7.3 trillion in Central Bank Ways and Means advances and $7.8 billion and €100 million for the government’s borrowing plan from 2022 to 2024.
The Assembly also approved a controversial $800 million World Bank loan and N500 billion for palliatives to cushion the effects of subsidy removal.
Despite assurances that the funds would address pressing economic challenges, experts have raised concerns about accountability and the actual impact of these funds on Nigerians.
The country’s debt has been on a steady rise over the years, with the National Assembly coming under fire for its alleged role in exacerbating the problem. Critics argue that the lawmakers have failed to exercise adequate oversight, allowing the government to accumulate debt without a clear plan for repayment.
According to reports, Nigeria’s debt has increased by 38.1% in just one year, rising from N7.25 trillion in 2022 to N10.01 trillion in 2023. This staggering growth rate has raised concerns about the country’s ability to service its debt, with many fearing that Nigeria may be heading towards a debt crisis.
The situation is further complicated by the fact that many states in Nigeria are also heavily indebted. According to the Debt Management Office (DMO), the combined debts of Nigeria’s 36 states reached N11.4 trillion as of June 2024. This figure represents a significant increase from the N10.01 trillion recorded in December.