The Network Against Corruption and Trafficking (NACAT) views with profound alarm President Bola Tinubu’s disclosure that Nigeria will commit approximately US$11.6 billion to debt servicing in 2026, a sum that represents nearly half of the nation’s projected revenue.
This disturbing revelation, made during the Africa Forward Summit in Nairobi, lays bare the harsh reality of a country that removed fuel subsidies in 2023 under the solemn promise of fiscal redemption, only to embark on an unrelenting borrowing spree that has now pushed debt obligations to suffocating heights.
We recall that when the fuel subsidy was abruptly removed in May 2023, Nigerians were sold the promise that the policy would free up massive revenue for infrastructure development, economic revitalisation, job creation, healthcare, education, and social welfare.
However, nearly three years after this controversial policy was implemented, Nigerians remain trapped in worsening poverty, spiraling inflation, declining purchasing power, and unprecedented economic hardship, while government borrowing continues at an alarming rate.
From every perspective, the implications of the US$11.6 billion debt servicing burden for Nigeria and its citizens are dire. Economically, the crowding-out effect is devastating: every dollar spent on debt servicing is a dollar denied to steel mills, textile factories, agro-processing plants, hospitals, schools, and digital innovation hubs. Our industrial base, already anemic, is being starved of the long-term, affordable capital it desperately needs.
Socially, the burden falls heaviest on ordinary citizens—market women, farmers, artisans, and young graduates—who continue to grapple with soaring inflation, escalating living costs, and eroded purchasing power, while the elite debate macroeconomic theories in air-conditioned boardrooms.
We are deeply troubled that, amidst this concerning debt servicing revelation, the Tinubu administration has perfected plans to secure yet another $1.25 billion World Bank facility. This development, reportedly the second-largest under this administration, further deepens our concern. If approved, Nigeria’s external debt stock will rise significantly, pushing total public debt beyond N160 trillion. This fresh borrowing, coming barely months before the next general elections, raises legitimate questions about its timing, purpose, and the transparency surrounding its utilisation.
NACAT demands that the Federal Government immediately publish a comprehensive, audited account detailing all savings accrued from the fuel subsidy removal since May 2023. Nigerians deserve full transparency on how every kobo of these savings has been expended. Such disclosure must include line-by-line breakdowns, verifiable projects, and measurable outcomes.
We further demand clarity on precisely who benefits from these successive loans. The proposed World Bank facility, coming just months before the 2027 general elections, must not become another conduit for elite capture. What iron-clad mechanisms has the government put in place to prevent the historical pattern of funds being diverted through corrupt procurement processes, inflated contracts, and ghost projects? Past experiences with multilateral borrowings have too often left Nigerians with massive debts and little tangible infrastructure to show for them.
NACAT insists on greater transparency in all aspects of loan negotiations, project implementation, and debt management processes. Loan agreements, terms, conditions, disbursement schedules, and performance benchmarks must be made publicly available before ratification. Nigerians have both a constitutional and moral right to know how public debt is accumulated and utilised in their name.
Secretive borrowing undermines democratic governance and erodes public trust.
The timing of this latest loan request is particularly troubling. At a time when citizens continue to grapple with the harsh effects of economic reforms, further increasing the debt stock without clear accountability mechanisms risks deepening public disillusionment. NACAT questions the sustainability of a borrowing strategy that appears more reactive than strategic, especially when domestic revenue generation and expenditure efficiency remain weak.
We call on the National Assembly, the Debt Management Office, the Auditor-General of the Federation, and anti-corruption agencies to immediately commence a thorough, independent review of Nigeria’s entire debt portfolio under the current administration. This review must assess value for money, adherence to due process, and alignment with stated developmental objectives. Citizens and civil society must be actively involved in this process.
As an organisation committed to the fight against corruption and the promotion of good governance, NACAT warns that unchecked debt accumulation without corresponding transparency and results erodes national sovereignty. When public resources are perpetually committed to debt repayment, the state’s capacity to deliver essential services and protect vulnerable populations diminishes, creating fertile ground for exploitation and trafficking.
We urge the Tinubu administration to demonstrate genuine commitment to fiscal responsibility by heeding these demands without delay.
Publishing the subsidy savings account, disclosing beneficiaries and safeguards for new loans, and institutionalising transparency in debt management are not optional—they are imperative for restoring public confidence and ensuring that economic reforms truly serve the Nigerian people.
The path forward must prioritise prudence, accountability, and citizen-centric governance. We remain resolute in holding leaders accountable and will continue to mobilise civil society in demanding a corruption-free, transparent, and sustainable approach to public finance management.