By John Odhe, YENAGOA
Nigeria’s rising debt profile has become a source of worry to members of the public who view the situation as painting a bleak future for the largest black race in the world.
Mixed reactions have continued to trail the growing public debt profile under the administration of president Bola Ahmed Tinubu, as citizens expressed concern over the country’s increasing borrowing from foreign nations and international financial institutions.
Nigeria currently owes significant external debts to countries including China, France, Japan, India, and Germany through various loan agreements.
The nation is also indebted to multilateral institutions such as the World Bank and the African Development Bank, in addition to private foreign investors through Eurobonds.
The issue dominated discussions during a live radio programme in Yenagoa, the Bayelsa State capital, where callers raised concerns over Nigeria’s rising refinancing risks and increasing borrowing costs.
A caller who simply identified himself as Robert, questioned why Nigeria continues to rely substantially on loans despite being a major oil producing nation.
According to him, several oil-producing countries use proceeds from crude oil sales to develop their economies rather than accumulate debt.
He wondered why Nigeria repeatedly resorts to borrowing whenever projects are to be executed, despite the country’s increasing daily crude oil production and export.
Another caller, who also identified himself as Clifford, lamented that the country keeps borrowing while major refineries in Warri, Port Harcourt, and Kaduna remain in comatose.
Also speaking on the programme, Tonye Mekeme and Collins accused President Tinubu of making “a mockery” of Nigerians through persistent borrowing.
They, however, blamed not only the president but also the Nigeria Labour Congress and lawmakers whom they accused of supporting agreements that do not translate into national growth and development.
Another caller questioned the rationale behind the removal of fuel subsidy if the government still struggles to maintain basic services or reduce borrowing.
He alleged that citizens have not felt the positive impact of the loans and claimed that borrowed funds are sometimes mismanaged by top government officials.
However, some contributors, including Mr. God’sOwn Emmanuel and Mr. Wise, argued that borrowing is not necessarily wrong if the funds are channeled towards infrastructure development and economic growth.
They maintained that their concern lies in what they described as excessive project costs and the lack of visible impact from borrowed funds. According to them, government contracts are often inflated, pushing the country deeper into debt without corresponding benefits for citizens.
According to the Debt Management Office (DMO), Nigeria’s total public debt stood at 153.29 trillion naira, approximately 103.94 billion dollars, based on the latest available figures. The debt profile has risen significantly since President Tinubu assumed office on May 29, 2023.
