Shehu Sani cautions Bola Tinubu on further borrowing, warns against reviving Nigeria’s profligate debt practices

Shehu Sani Cautions Bola Tinubu on further Borrowing, warns against reviving Nigeria’s profligate debt practices

Former Senator of Kaduna, Shehu Sani, has issued a cautionary note to President Bola Tinubu, urging him to exercise prudence in the matter of obtaining additional loans and to avoid resurrecting the nation’s past culture of reckless borrowing.

It has come to light that Nigeria’s foreign debt is set to escalate to approximately $51 billion, owing to President Bola Tinubu’s appeal to the Senate, seeking authorization for an additional $7.8 billion and €100 million, as part of his 2022-2024 borrowing blueprint.

Contrary to official explanations, a number of financial analysts have discredited the stated reasons for this borrowing, contending that it is intended to function as a stopgap measure to alleviate the country’s current balance of payment challenges.

As of June 2023, Nigeria’s foreign debt was recorded at $43.2 billion, with domestic debt amounting to N54.1 trillion, resulting in a total public debt of N113.4 trillion. When considering the latest call for additional borrowing by the President, combined with the depreciation of the naira, the overall public debt is projected to swell to N130 trillion.

In a letter submitted to the Senate, the President disclosed that this request was founded on the authorization granted during the administration of President Muhammadu Buhari, subsequent to a Federal Executive Council (FEC) meeting in early May 2023.

Advising President Bola Tinubu against embracing new loans, Mr. Sani underscored the need for vigilance to prevent a return to the imprudent borrowing practices of previous governments.

“The Federal Government’s proposed borrowing of $7.8 billion will elevate our external debt to $50,859.19 billion. The President must exercise caution to prevent the country from reverting to the profligate borrowing habits of past regimes,” tweet by Mr Sani read.

 

https://x.com/ShehuSani/status/1720020650503319739?s=20