CSOs fault opposition to Tinubu’s $2.2 billion loan request

Some Civil Society Organisations on Thursday described the opposition to the Federal Government’s $2.2 billion fresh loan request as misguided and uninformed.

The organisations including the Economic Rights Advocates, Centre for Social Justice, Equity, and Transparency (CESJET) and the Good Governance Advocacy Network, said the proposed $2.2 billion loan aims to support vital industries benefiting Nigerians.

President Tinubu on Tuesday requested the Senate’s approval for the new external borrowing to finance Nigeria’s 2024 budget deficit, estimated at ₦9.17 trillion

The Upper Chamber on Thursday approved the N1.77trn ($2.2bn) external borrowing after it considered the report of its committee on local and foreign debt during plenary on Thursday.

The CSOs said President Bola Tinubu-led administration has demonstrated prudent financial management by fulfilling financial commitments to foreign creditors, earning the country a reputation for responsible borrowing and repayment.

Speaking at a press conference in Abuja, convener, Dr. Emeka Theodore noted that Nigeria’s borrowing plans align with international best practices, with a manageable fiscal deficit of ₦8 trillion in the 2025 budget.

Theodore slammed organizations spreading false information about Nigeria’s borrowing, labelling it “irresponsible and unsustainable.”

The CSOs urged opposing politicians to abandon populist stances and acknowledge governance realities.

Theodore denied that the loan request would have disastrous effects on ongoing programs and projects, potentially shelving infrastructure development, healthcare expansion, and educational reforms.

He stated that borrowed funds will support revenue-generating plans and institutional improvements. Investments in digital technologies, infrastructure, and agricultural changes will increase tax collection effectiveness, diversify revenue streams, and boost exports.

The CSOs emphasized public support for development projects.
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“The $2.2 billion loan proposal is clearly a necessity for Nigeria’s progress. Rejecting this proposal would be self-defeating, compromising current initiatives and endangering the future of the country,” he added.

“A better future for all Nigerians is at stake when the loan is approved; it is not just an economic choice, but a mission to save generations.

“To our fellow citizens, we implore you to support this great endeavor and hold the government responsible for making sure borrowed money are used prudently. By working together, we are confident to create a more sustainable and inclusive Nigeria that is stronger and more wealthy.

“This is a Clarion call for unity; Let us unite in this cause, recognizing that borrowing responsibly is not a sign of weakness but a strategic step toward achieving our collective aspirations.”