Nigeria is a nation richly blessed with various natural resources, including crude oil, natural gas, gold, tin, timber, californium, and agricultural products.
These resources, combined with its large population of over 200 million people, have earned Nigeria the title of the “Giant of Africa.”
Yet, despite its abundant wealth, Nigeria has consistently relied on borrowing money from institutions like the International Monetary Fund (IMF), the World Bank, and foreign countries.
This reliance on external loans has raised several pressing questions: Why can’t Nigeria sustain itself with its resources? Why can’t the country feed its population or fund its development without incurring massive debt? And what is the government doing with the borrowed funds?
As of recent estimates, Nigeria’s public debt has ballooned to over N130 trillion. This staggering amount begs the question, How will the country repay such a monumental debt ? The consequences of this borrowing spree pose a severe threat to Nigeria’s economy.
A nation heavily burdened by debt often struggles with inflation, reduced creditworthiness, and limited resources for essential development projects.
One of the core issues behind Nigeria’s dependence on borrowing is the mismanagement of its natural resources and pervasive corruption.
Successive governments have failed to harness these resources effectively to drive economic growth, create jobs, and improve the standard of living for Nigerians.
For instance, during the administration of former President Muhammadu Buhari, the Federal Government allocated significant funds to projects like the Mambilla Hydroelectric Power Plant.
The then Minister of Power, Babatunde Fashola, announced that billions of naira were released for the project.
Yet, years later, there is little to show for it, and the project remains incomplete. Such cases of unaccounted funds and unfulfilled promises are not isolated but rather symptomatic of a larger problem funds meant for national development often disappear into the pockets of corrupt politicians and officials.
The heavy reliance on borrowing has far-reaching implications. With much of the borrowed money allegedly siphoned off by corrupt officials, the intended benefits such as infrastructure development, healthcare improvements, and educational advancement fail to materialize.
Instead, the general population bears the brunt of the debt burden through higher taxes, reduced public services, and a stagnant economy.
The failure to invest in agriculture, manufacturing, and other productive sectors means Nigeria remains overly dependent on oil exports, a volatile source of revenue.
Even with its vast agricultural potential, the country struggles to feed its population, relying heavily on imported food products.
This dependency further strains the economy and exacerbates the poverty experienced by millions of Nigerians.
If Nigeria is to break free from the cycle of borrowing and debt, it must take decisive steps to manage its resources effectively and reduce wasteful spending.
The government must prioritize sectors such as agriculture, mining, manufacturing, and technology to reduce dependence on oil revenues.
Combat Corruption: Implementing stricter anti-corruption measures, ensuring transparency in government spending, and holding officials accountable are essential to curbing the misuse of public funds.
Invest in Infrastructure: Properly funded and well-monitored infrastructure projects can stimulate economic growth and create jobs.
Promote Self-Sufficiency: Boosting domestic food production and reducing reliance on imports can help stabilize the economy and ensure food security.
Reform Public Finance: The government must adopt prudent fiscal policies, reduce unnecessary spending, and prioritize debt repayment to avoid further financial crises.
Nigeria’s dependence on borrowing is a symptom of deeper systemic issues, including corruption, poor governance, and a lack of economic diversification.
While borrowing can sometimes be a necessary tool for economic development, it becomes dangerous when funds are mismanaged or embezzled.
The government must urgently harness Nigeria’s abundant natural resources and invest in its people.
Failure to do so will only deepen the country’s financial woes and jeopardize its future. For Nigeria to truly live up to its potential as the “Giant of Africa,” it must chart a new course based on self-reliance, accountability, and sustainable development. The time to act is now, or the nation risks sinking further into economic turmoil.
