The Federal Government has once again secured another foreign loan—this time, $238 million from the Japan International Cooperation Agency (JICA)—to strengthen the national power grid. While the intention may sound noble, it adds to an already alarming trend of relentless borrowing under President Bola Ahmed Tinubu’s administration.
Since taking office in May 2023, Tinubu’s government has leaned heavily on loans and credit facilities to fund projects and stabilize the economy. From World Bank budget support loans, IMF credit lines, Afreximbank facilities, and now bilateral deals such as the JICA loan, Nigeria seems to be running on borrowed lifelines. According to the Debt Management Office, Nigeria’s public debt has already crossed ₦121 trillion ($91.46 billion) as of March 2025, and continues to rise.
This borrowing spree raises a fundamental question: how much longer can Nigeria sustain this debt culture without slipping into a full-blown debt crisis? Already, over 90% of government revenue is spent on servicing debt, leaving little room for capital investments. If this trajectory continues, Nigeria may soon earn the unenviable title of Africa’s most indebted nation.
Yes, electricity, infrastructure, and social projects require funding. But with corruption, mismanagement, and poor execution still rampant, loans rarely translate into tangible development. Instead, they become future burdens for generations yet unborn.
Tinubu’s government must realize that no country has ever borrowed its way into prosperity. Sustainable growth comes from production, industrialization, and efficient tax reforms—not from perpetual dependence on foreign creditors. Unless a drastic policy shift occurs, Nigeria risks mortgaging its sovereignty to lenders who will dictate the terms of our economic survival.
The time has come for Nigerians to ask hard questions: Are we building a future, or are we simply digging ourselves deeper into a financial grave?
