Nigeria’s borrowing spiral: A future written in debt
Why Nigeria’s Leaders Flee Abroad for Healthcare While Public Hospitals Collapse. Photo credit; Eja Manifest.
By Eja Manifest Eji
Nigeria stands today at a critical crossroads—one defined not just by economic strain, but by a pattern that has become dangerously familiar: borrowing to survive, rather than borrowing to grow.
In a country where more than half of the population battles poverty, hunger, and limited access to basic services, the logic of continued borrowing raises urgent questions. The reality is stark: while citizens struggle daily, the government continues to accumulate debt—now estimated between ₦150 trillion and ₦180 trillion.
What is even more troubling is not just the size of the debt, but the purpose behind it.
Borrowing to Service Debt: A Dangerous Cycle
In recent developments, the President requested approval for an additional $6 billion loan, citing the need to service existing debts. This signals a shift from developmental borrowing—where loans fund infrastructure, education, or healthcare—to survival borrowing, where new loans are used simply to repay old ones.
This is the classic definition of a debt trap.
Rather than creating value, such borrowing deepens dependency. It raises a fundamental question:
If we are borrowing to repay debt, when do we actually repay what we owe?
The Question of Impact: Where Are the Projects?
Over the years, Nigeria has borrowed heavily with promises tied to infrastructure, economic growth, and national development. Yet, for many Nigerians, the impact remains invisible.
Roads remain incomplete or poorly maintained
Power supply remains unstable
Public schools and hospitals are underfunded
Youth unemployment continues to rise
This disconnect fuels public skepticism:
If billions have been borrowed, why does development not reflect it?
Borrowing is not inherently bad—countries borrow to invest. But the difference lies in what the borrowing achieves. In Nigeria’s case, the outcomes have not matched the scale of the debt.
Who Pays the Debt?
Every naira borrowed today is a burden placed on future generations.
The repayment structure relies on:
Government revenues (largely from oil and taxes)
Increased taxation on citizens
Reduced public spending in other sectors
In practical terms, this means:
Higher cost of living
Fewer social services
Greater economic hardship for ordinary Nigerians
The debt is not abstract—it is paid daily by the people.
The Role of the National Assembly
Equally concerning is the speed and pattern of loan approvals.
Recent events show that requests for borrowing are often approved swiftly by the National Assembly, sometimes with minimal public debate or scrutiny. This raises critical governance questions:
Where is legislative oversight?
Are these loans being rigorously evaluated?
Is there accountability for how borrowed funds are used?
In a functioning democracy, borrowing decisions of this magnitude should involve transparency, public engagement, and strict accountability mechanisms.
A Nation at Risk of Perpetual Debt
If the current trend continues, Nigeria risks entering a state of perpetual indebtedness—where:
A significant portion of national revenue goes into debt servicing
Development slows due to limited fiscal space
Economic sovereignty becomes compromised
At that point, the country is no longer borrowing for progress—it is borrowing to stay afloat.
When Will Nigeria Break Free?
The question is no longer if Nigeria should borrow, but how and why.
To break free from this cycle, Nigeria must:
Shift from consumption borrowing to productive investment
Ensure transparency in loan utilization
Strengthen legislative oversight and accountability
Diversify revenue beyond oil dependence
Plug leakages caused by corruption and inefficiency
Most importantly, there must be a clear, measurable link between every borrowed naira and tangible national development.
Conclusion: A Future Still Unwritten
Nigeria’s debt story is still being written. It can either become a cautionary tale of economic mismanagement—or a turning point toward fiscal discipline and sustainable growth.
But one truth remains undeniable:
A nation cannot borrow its way out of poverty without a clear plan for growth.
Until borrowing translates into visible, measurable improvement in the lives of citizens, the questions will persist—and the burden will continue to grow