Opinion

$21 Billion Loan: Can There Be Recovery Amid Excesses and Economic Contradictions ?

By Yahaya Abdulrahman 

The recent approval of a staggering $21 billion loan request by the National Assembly, made on behalf of the Tinubu-led administration, has rekindled public anxiety about the true direction of Nigeria’s economy. In a climate where citizens are being asked to sacrifice in the name of reform, it’s only right to question: is the government itself operating in an economic recovery mode?

Since assuming office in May 2023, the Tinubu administration has embarked on a borrowing spree. From a $1.5 billion World Bank facility for budget support and infrastructure, to $750 million for educational reform, and $500 million for electricity improvement, the country’s debt profile continues to expand—now joined by this new and most significant loan request yet. Sadly, these loans have not translated into visible or impactful economic outcomes for the average Nigerian.

This borrowing trend is even more worrisome when viewed against the backdrop of recent revenue-boosting measures: the removal of petrol subsidy, increase in electricity tariffs, and the introduction of new taxes on banking transactions, corporate activities, and basic services. These are tough measures—sold to Nigerians as necessary sacrifices to wean the country off debt. So, why does borrowing continue to rise with no end in sight?

Even worse is the extravagant spending pattern of the current administration. Billions have gone into the rehabilitation of public refineries like Port Harcourt and Warri, yet they remain either inactive or grossly underperforming. Meanwhile, Nigeria continues to import petroleum products, despite the commissioning of the Dangote Refinery, which has the capacity to meet domestic fuel demands. These contradictions continue to drain foreign reserves and hurt national productivity.

At the same time, festering insecurity, particularly in rural areas, has pushed farmers off their lands, destroyed livelihoods, and crippled food production. This growing threat to productivity is lamentable and demands urgent, actionable intervention—not just press statements.

While agriculture has been touted as a pathway out of poverty and hunger, government support has remained largely rhetorical. If Nigeria is serious about economic recovery, it must:

Drive comprehensive agricultural reform,

Ensure year-round production through irrigation farming,

Invest in local production, supply, and assembly of tractors, modern tools, and irrigation equipment,

Deepen value addition through agro-processing, and

Embrace innovation and technology to modernize farm practices.

Beyond agriculture, mining holds enormous untapped potential. With Nigeria richly endowed with solid minerals, there is room for massive job creation, industrial linkages, and foreign exchange earnings—if the sector is properly regulated, supported, and scaled. The mining sector must become a centerpiece of economic revival, alongside agriculture and manufacturing.

Crucially, Nigeria’s youth population must be mobilized for national development. Their natural inclination to technical skills, digital innovation, and enterprise—whether in basic fabrication or advanced technology—must be embraced, supported, and rewarded. Government at all levels should encourage and patronize the products, services, and inventions of young innovators and local producers. That is how to stimulate a productive economy.

Unfortunately, the country's micro, small, and medium enterprises (MSMEs)—the bedrock of any serious economy—are being choked by hostile policies, rising operational costs, and inadequate financing. Without urgent intervention, many more businesses will fold, worsening unemployment and deepening poverty.

Meanwhile, top government officials continue to live large. The federal government’s acquisition of a new presidential jet, a luxury yacht, and a fleet of expensive vehicles for the president, first lady, and lawmakers, sends the wrong message. These are avoidable expenses at a time when Nigerians are being asked to endure pain and sacrifice.

The National Assembly, as a custodian of public trust, must stop rubber-stamping loan requests. It must demand performance reviews of past loans, insist on detailed implementation plans, and ensure proper oversight. Endless borrowing with no clear impact will only mortgage the future of generations to come.

Nigeria doesn't need more loans—it needs more discipline, focus, and accountability. It needs leaders who match the people’s sacrifice with action. A nation cannot recover economically while it continues to spend recklessly, ignore productive sectors, and neglect the security and innovation capacity of its people.

If we are to truly build a stronger and more prosperous Nigeria, we must shift from paper promises to practical delivery—in agriculture, mining, industry, innovation, and governance.