Abuja, Nigeria – July 28, 2025
President Bola Ahmed Tinubu’s administration has adopted an aggressive borrowing strategy that is sparking national debate and drawing global attention. With annual borrowing now at N25.5 trillion—compared to an average of N2.2 trillion under former President Muhammadu Buhari—the government argues that this ambitious approach is essential for transforming Nigeria’s long-stalled economy and unlocking sustainable growth.
The African Democratic Congress (ADC) recently highlighted the surge in debt, noting that Nigeria’s public debt has ballooned from N12.6 trillion in 2015 to over N149 trillion under the All Progressives Congress (APC). With a proposed $21 billion loan on the horizon, total debt could exceed N200 trillion by the end of 2025. Despite these figures, the administration insists that the borrowing is not reckless spending but a calculated investment in infrastructure, education, and healthcare—sectors that have suffered from decades of underfunding.
President Tinubu, who campaigned on a message of “renewed hope,” has defended the move as a “painful yet necessary correction.” He argues that strategic borrowing, when channeled into productive assets, can jumpstart the economy and create jobs. Finance Minister Wale Edun echoed this sentiment in a recent briefing, emphasizing that the government is focused on projects that will generate long-term returns, including power grid upgrades, improved transportation networks, and expanded university funding.
Balancing Debt and Development
The surge in borrowing has sparked concerns over Nigeria’s fiscal health, especially with over 60% of national revenue now dedicated to servicing debt. However, the Debt Management Office (DMO) maintains that the country’s debt-to-GDP ratio remains within safe limits when compared to international standards. According to the DMO’s July 2025 report, Nigeria’s strategic use of credit markets mirrors models adopted by fast-growing economies where infrastructure-led growth has reduced poverty levels.
Critics, including the ADC, warn that lack of transparency and potential mismanagement could turn the borrowing spree into what they term “fiscal vandalism.” In response, the administration has pledged to release detailed loan agreements, repayment schedules, and impact assessments to reassure both citizens and investors. Progressive tax reforms are also being considered to increase revenue without overburdening the struggling middle class.
Global and Local Reactions
International financial institutions are watching closely. The IMF’s 2023 report underscored that Nigeria’s demographic potential, combined with well-directed investments, could lift millions out of poverty. The administration’s emphasis on productive credit—borrowing for infrastructure and business support rather than consumption—aligns with recommendations from global development experts.
Local business leaders are cautiously optimistic. The Association of Small Business Owners of Nigeria has noted that improved infrastructure could lower operating costs, expand credit access, and boost investor confidence. Meanwhile, social welfare programs funded by the loans, including targeted cash transfers, are already providing relief to vulnerable households.
A High-Stakes Gamble
As Nigeria stands at an economic crossroads, President Tinubu’s borrowing policy represents a bold gamble. Supporters believe that with disciplined execution, the strategy could redefine Nigeria’s economic trajectory and position it as a regional powerhouse. Skeptics argue that without strict accountability and efficient project management, the rising debt burden could derail progress and leave future generations paying the price.
Whether this ambitious plan becomes a turning point or a cautionary tale will depend on transparency, public support, and the government’s ability to convert borrowed capital into tangible national gains. For now, all eyes are on Abuja as the administration attempts to prove that bold leadership can transform challenges into opportunities.
