SERAP Urges National Assembly to Reject Tinubu’s $24bn Loan Request, Warns of Debt Crisis

The Socio-Economic Rights and Accountability Project (SERAP) has called on the National Assembly to reject President Bola Tinubu’s request to borrow $24 billion, warning that the move could severely worsen Nigeria’s already fragile debt situation.

In a statement posted on its official X (formerly Twitter) account, SERAP cautioned that the proposed borrowing plan would escalate the country’s total debt stock to an estimated ₦183 trillion, describing the figure as “clearly not sustainable and not in the public interest.”

“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24bn. The growing national debt is not sustainable and not in the public interest,” SERAP said.

The group raised concerns over the escalating cost of debt servicing, which it said is consuming a significant portion of government revenue and placing further strain on national resources.

InfoStride News reports that President Tinubu, in separate letters to the Senate and House of Representatives, is seeking approval for an external borrowing plan of over $21.5 billion, equivalent to ₦33.39 trillion at the official exchange rate of ₦1,590 per dollar. He is also requesting permission to issue domestic bonds worth ₦757.9 billion to settle outstanding pension liabilities.

The president said the borrowing plan—which spans 2025 to 2026—targets critical sectors such as infrastructure, healthcare, agriculture, education, water supply, security, and job creation. According to him, it is also aimed at mitigating the economic impact of the fuel subsidy removal.

The full loan package includes $21.5 billion, €2.19 billion, 15 billion Japanese Yen, and a €65 million grant, all of which are to be used for nationwide development projects across the 36 states and the Federal Capital Territory (FCT), with a focus on rail transport, healthcare, and poverty alleviation.

On the pension bond issuance, Tinubu stated that the move is intended to clear arrears under the Contributory Pension Scheme (CPS), which had accumulated due to years of non-compliance linked to revenue shortfalls. He said the Federal Executive Council (FEC) has already approved the plan, which is expected to improve retiree welfare, boost confidence in the pension system, and inject liquidity into the economy.

InfoStride News reports that Nigeria’s public debt has surged in recent years, increasing by 48.6% in 2024 to ₦144.66 trillion, up from ₦97.34 trillion in 2023. The Federal Government is responsible for approximately 95% of the total debt.