THE BURDENS OF $6 BILLION DOLLARS BORROWINGS ON NIGERIA FRAGILE ECONOMY

By AVM (RTD) AKUGBE IYAMU

An unmanaged economy with sustained borrowings would amount to impoverished people with sustained hardship, high energy costs, inadequate healthcare, dilapidated infrastructure, declining education standards and chaotic foreign policy.

The envisaged economic elephant in borrowings always give birth to a miserable economic mouse where packaging is much better than the content. In economic development and restoration, stability and consolidation, creativity and innovation are a necessity for survival.

The current $6 billion dollar borrowing, the fastest approval I have ever witnessed by a country’s national Assembly to me could have be substantially substituted by other economic actions. This is because as of April 1, 2026, Nigeria’s total public debt is projected to exceed ₦155 trillion to ₦161.6 trillion.

This upward revision follows the Nigerian Senate’s approval of a fresh $6 billion (approximately ₦8.4 trillion at an exchange rate of ₦1,400/$) external loan request to fund the 2026 budget and infrastructure projects.

Previous actions clearly showed that excessive borrowings to fix an economy does not result in capacity needed to be triumphant in fixing that economy. What Nigeria need is not more borrowings but An economic case (or case study) by an astute and proactive economic team. For proper context, Economic casa is a foundational tool used to justify investments, analyze development projects, or illustrate theories, often highlighting Value for Money (VfM) and strategic alignment. These cases typically include cost-benefit analyses,, financial forecasting, and risk assessments to show how benefits will be achieved.

Any country that want to grow her economy must in creative manner put up actions and strategies to reduce her profligacy because addressing poverty, hunger and inequality are essential to winning the war against a dwindling economy.

There have to be reductions in public expenditure with more transparency and accountability because everywhere has a gate including heaven and only hell have no gate and Nigeria economic postcard sure need accountability gate as a country’s economy is not a grocery store or supermarket of borrowings. It is the reality that often limits the factors of choices where policy makers are challenged to make simple choices between policies that are contrasting opportunities. They are often challenged to chose one of many options because a common problem with eight different possible solutions is a nightmarish joke.

Life now in Nigeria requires attention elsewhere and everywhere with conversation often centred around economic growth and development, security and the broader questions of where we are headed as a nation. As a country, we need to understand where we are while still allowing where we want to go to.

AVM (RTD) AKUGBE IYAMU MNSA fsi  CONSULTANT ON CLIMATE CHANGE AND ANALYST ON ENVIRONMENTAL POLICIES AND PRESIDENT ASSOCIATION OF ENVIRONMENTAL PROTECTION AND CLIMATE CHANGE PRACTITIONERS.