ENUGU, Nigeria (VOICE OF NAIJA)- The Socio-Economic Rights and Accountability Project (SERAP) has called on the National Assembly to reject President Bola Tinubu’s administration’s request to secure a $24 billion loan, warning that the new borrowing plan would dramatically worsen Nigeria’s already precarious debt situation.
In a statement shared via its official X (formerly Twitter) account, the civil society group said the proposed loan would raise Nigeria’s total public debt stock to approximately N183 trillion, which it described as “clearly not sustainable and not in the public interest.”
“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24bn.
“The growing national debt is not sustainable and not in the public interest”, SERAP said.
The organization further warned that debt servicing already consumes a significant portion of the country’s revenue, raising serious concerns about long-term fiscal stability.
As previously reported, Nigeria’s total public debt is projected to surpass N180 trillion following President Tinubu’s fresh appeal to the National Assembly for approval to obtain new external and domestic loans totalling N34.15 trillion.
READ ALSO: SERAP Sues Tinubu Over Alleged Missing $3.4bn IMF Loan
In separate letters addressed to both the Senate and the House of Representatives, Tinubu requested approval for an external borrowing package exceeding $21.5 billion equivalent to N33.39 trillion at the current official exchange rate of N1,590 to the dollar.
He also asked for the legislature’s approval to issue a domestic bond worth N757.9 billion to clear outstanding pension liabilities.
According to President Tinubu, the 2025–2026 borrowing plan targets strategic sectors, including infrastructure, health, agriculture, education, water supply, security, and job creation.
He said the loans would help cushion the economic strain caused by the removal of fuel subsidy.
The comprehensive loan package, Tinubu stated, includes $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant.
He assured lawmakers that the funds would be invested in development projects across all 36 states and the Federal Capital Territory (FCT), with a special focus on rail transport, healthcare services, and poverty alleviation initiatives.
On the issue of pensions, the president explained that the proposed bond issuance would be used to settle backlogs under the Contributory Pension Scheme (CPS).
He cited years of revenue constraints and non-compliance as reasons for the accumulated liabilities.
Tinubu said the plan, which has already received approval from the Federal Executive Council (FEC), is expected to improve retirees’ welfare, restore confidence in the pension system, and inject liquidity into the economy.
Nigeria’s public debt has ballooned in recent years, increasing by 48.6 per cent in 2024 to reach N144.66 trillion, up from N97.34 trillion in 2023.
The Federal Government is responsible for approximately 95 per cent of this total.