The National Association of Seadogs (Pyrates Confraternity) has raised the alarm over Nigeria’s rising debt profile, saying such borrowings could further sink the economy. 

The group, in a statement by the NAS Capn, Dr Joseph Oteri, said President Bola Tinubu’s latest $2.20 billion external borrowing request to partially finance the 2024 budget deficit of N9.17 trillion, which the National Assembly has approved, was worrisome and raised critical questions about Nigeria’s fiscal trajectory, debt sustainability, and economic strategy.

In the statement titled, ‘It’s time to ask questions about Federal Government’s endless borrowing,’ the association blamed the Federal Government for relying mainly on crude oil exports as its source of revenue.

The President had hinged his latest request for a loan on the ongoing implementation of projects and programmes in the 2024 Appropriation Act, designed to stabilise the economy.

However, the Pyrates Confraternity argued that citing the provisions of the Debt Management Office (DMO) Act of 2003 to explore Eurobounds, Sovereign Sukuk, and syndicated loans to secure the funds does not sit well with Nigerians, as it underscores the urgency of addressing deeper structural issues in Nigeria’s economy.

Tinubu recently reported that Nigeria’s debt service-to-revenue ratio has decreased from roughly 97 per cent to 65 per cent since May 2023. 
The association, however, noted that Nigeria remains plagued by the current administration’s incorrigible borrowing habits. 

The statement read in part: “As of June 2024, the DMO reported that Nigeria’s total public debt had hit N134.3 trillion, putting the country at a debt per capita of N619,501 for 216.7 million Nigerians.”