The Labour Party Senatorial Candidate for Anambra Central, Ven. Tochukwu Ikezue, has urged the Senate to reject the Federal Government’s proposed $1.5 billion World Bank loans, expressing concern over Nigeria’s rising public debt.
Ikezue, in a statement issued through his media team, said the proposed borrowing was coming at a time when Nigeria’s total public debt had reportedly risen to N166.79 trillion as of the end of June 2026.
The Federal Government had opened discussions with the World Bank for three new loans totalling $1.5 billion, with documents obtained from the World Bank showing that the proposed financing comprises three separate $500 million facilities for climate resilience, social protection and early childhood development.
The most immediate is a proposed $500 million additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.
The financing would raise the size of ACReSAL from its previously approved $700 million to $1.2 billion, entirely financed through the International Development Association, the World Bank’s concessional financing arm.
The additional financing is expected to support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting and storage, reforestation and other climate-resilient interventions.
Acknowledging the importance of the sectors, Ikezue, however, argued that the country could no longer afford to continue accumulating external debt without greater accountability and demonstrable value from previous borrowings.
He questioned the transparency surrounding earlier loans obtained by the Federal Government, saying Nigerians were yet to see commensurate impact from billions of dollars borrowed in recent years.
The LP candidate particularly cited previous borrowings for social protection and climate-related programmes, arguing that their impact had not been sufficiently evident on the ground.
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He also faulted what he described as borrowing for consumption rather than production, saying the government should instead focus on reducing the cost of governance, blocking leakages and improving revenue generation.
He further expressed concern that additional external borrowing could increase economic pressure on Nigerians through its potential effects on the naira and inflation, with vulnerable citizens bearing the consequences.
Ikezue therefore called on members of the National Assembly, civil society organisations and Nigerians to oppose what he described as an unsustainable borrowing pattern.
“What Nigeria needs now is fiscal discipline, accountability, and creative leadership, not another $1.5 billion debt,” he said.
