Susan Abayomi
Former Anambra State Governor and presidential candidate of the Nigerian Democratic Congress (NDC), Peter Obi, Oyo State Governor Seyi Makinde and the NDC have called on President Bola Tinubu to account for the country’s rising debt profile and explain how previous borrowings have translated into tangible benefits for Nigerians.
Their demands followed the Federal Government’s request for National Assembly approval to secure additional external loans amounting to $20.52 billion and €1.045 billion, amid growing concerns over Nigeria’s ₦166.79 trillion public debt and increasing debt-servicing obligations.
The latest borrowing proposal has sparked questions about the sustainability of the country’s debt, particularly as businesses continue to grapple with high interest rates and limited access to affordable long-term financing.
Speaking at a town hall meeting in Enugu, Obi challenged Tinubu to explain how the funds borrowed since assuming office in May 2023 had been utilised, insisting that Nigerians deserved transparency and accountability from the Federal Government.
He argued that the administration should provide clear explanations about its borrowing decisions, especially against the backdrop of persistent economic challenges, including hunger, unemployment and insecurity.
Obi also challenged the president to embark on nationwide campaigns ahead of the 2027 general election to personally explain his administration’s achievements and respond to questions from citizens.
He urged Nigerians to assess political aspirants based on competence, integrity and their capacity to address the country’s challenges rather than ethnic or religious affiliations.
Outlining his priorities if elected president, the former Anambra governor pledged to tackle insecurity, fight corruption, improve access to education and primary healthcare, and strengthen electricity supply to revive industrial activities.
He also promised to prioritise transparency in public spending and ensure that every loan contracted by his administration would have clearly defined purposes and measurable benefits.
On electricity, Obi reiterated his commitment to generating, transmitting and distributing at least 10,000 megawatts of power to support manufacturing and economic development.
Similarly, Makinde questioned the justification for continued external borrowing despite claims by the Federal Government of improved revenue collections and substantial foreign reserves.
Speaking at the South-East Town Hall Meeting organised by the Makinde-Daura Presidential Campaign Organisation, the Oyo State governor argued that increased government revenue should translate into improved access to affordable financing for businesses and manufacturers.
Drawing from his private-sector experience, Makinde identified high interest rates and the limited availability of long-term credit as major obstacles to industrial expansion and job creation.
He noted that businesses, particularly manufacturers, could struggle to expand their operations when borrowing costs remain high and financing is largely restricted to short-term facilities.
Makinde promised that his administration, if elected president, would prioritise entrepreneurship, youth employment and the creation of a favourable business environment to encourage investment and sustainable job creation.
He also urged political leaders to demonstrate sincerity in managing the economy, insisting that Nigerians deserved accurate information about the country’s financial situation.
The governor further called on Nigerians to reject ethnic and religious divisions, maintaining that the country’s economic and security challenges affected citizens irrespective of their backgrounds.
He said his Reset Nigeria Agenda was built around four key pillars: economic restructuring, security reforms, education system reform and resetting the country’s socio-political environment.
Makinde disclosed that the campaign organisation’s manifesto would be unveiled on November 4, 2026, following consultations across the country’s six geopolitical zones.
Meanwhile, the NDC has demanded a comprehensive, project-by-project account of external loans contracted by the Tinubu administration since May 2023.
In a statement issued by the spokesperson of its National Presidential Campaign Council, Dr Chiogo Constance Ikokwu, the party expressed concern over the rapid increase in Nigeria’s debt profile and questioned the economic benefits derived from previous borrowings.
According to the party, Nigeria’s external debt increased from $43.16 billion in June 2023 to $54.52 billion in June 2026, representing a rise of $11.36 billion or 26.3 per cent.
It also stated that the country’s total public debt rose from ₦87.38 trillion to ₦166.79 trillion within the same period, an increase of approximately 90.9 per cent.
The party warned that Nigeria’s potential external debt exposure could reach approximately $81.96 billion if the latest borrowing proposals and previously approved but undrawn facilities were fully accessed.
It, however, clarified that the figure was an illustrative estimate rather than the country’s actual outstanding external debt.
The NDC called on the Federal Government to publish a detailed register of all external loans contracted since May 2023, including the amounts borrowed and disbursed, repayment conditions, project locations, implementation status and independently verified outcomes.
It also questioned the need for additional borrowing amid reports of inadequate releases of capital allocations to ministries, departments and agencies under previous budgets.
The party urged the National Assembly to subject the latest borrowing request to rigorous scrutiny, particularly in view of the country’s future debt-servicing obligations and exposure to exchange rate fluctuations.
While acknowledging that borrowing could support national development, the NDC maintained that loans must finance productive projects capable of delivering measurable economic benefits.
The Federal Government, however, has defended its supplementary external borrowing proposal, explaining that the funds are intended to support investments in infrastructure, agriculture, healthcare, education, water resources, security and other critical sectors.
The administration maintains that borrowing for productive investments should be assessed based on the development outcomes expected from the projects rather than solely on the increase in public debt.
Nevertheless, the latest criticisms from Obi, Makinde and the NDC have renewed calls for greater transparency in public borrowing, with demands for the Federal Government to demonstrate how previous loans have improved living conditions and strengthened Nigeria’s economy.
