A former member of the House of Representatives, Dachung Bagos, has expressed concerns over the Nigerian government’s borrowing habits.
Bagos questioned how the country plans to repay its loans, citing the lack of a clear template for repayment.
“Nigeria is not an industrialized nation, nor is it an exporting nation,” Bagos said during an appearance on Channels Television’s Politics Today.
He continued, “We’re borrowing to pay for everything, from breakfast to school fees. How do we expect to pay back these loans?”
Bagos’ comments come after President Bola Tinubu’s recent request for a N1.77 trillion ($2.2 billion) loan, which was approved by the Senate.
The loan is part of a larger plan to finance the N9.7 trillion budget deficit for the 2024 fiscal year.
The Central Bank of Nigeria (CBN) reports that the Federal Government spent $3.58 billion on debt servicing in the first nine months of the year.
This has raised concerns about the country’s growing debt burden and its ability to repay its loans.
Bagos is not alone in his concerns as former presidential candidate Peter Obi has also spoken out against Nigeria’s increasing debt profile, noting that the government’s borrowings have had little impact on the country’s economy.