NO GOVERNMENT has unlimited resources to meet all national needs. Effective governance involves allocating scarce resources strategically to maximise benefits. Sustained over time, this approach drives development. The key to success lies in prioritising resources wisely – a crucial determinant of a nation’s progress.
It is not out of place for governments to seek financial assistance to supplement revenue and deliver basic services. Experts argue that borrowing isn’t inherently bad if used for productive purposes, such as infrastructure development, rather than consumption. Strategic borrowing can help bridge funding gaps and stimulate economic growth.
President Tinubu’s claims of inheriting a bad situation ring hollow amidst unchecked governance costs and misallocated borrowed funds. Unrealistic projects drain resources, leaving citizens wondering about the true purpose of these investments.
When a nation habitually borrows without tangible benefits for its citizens, it’s alarming. In Nigeria today, development seems confined to virtual platforms – TV slides, computer screens, and digital billboards. Yet, on-ground realities tell a different story: streets, markets, homes, schools, and workplaces lack meaningful development. The economy is already strained by high inflation, a weakening naira, rampant unemployment, and underfunded essential services.
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The question remains: where are the borrowed funds going?
The ECONOMYPOST, an Online media, reported in its April 4th 2025 publication that President Tinubu’s 23-month debt tally stands at N18.7 trillion, significantly less than former President Buhari’s N75.26 trillion over 8 years. However, Nigeria’s public debt has surged under Tinubu’s leadership – from N87.379 trillion (June 2023) to N142.319 trillion (September 2024) and N144.67 trillion (December 2024). Analysts warn that the nation’s debt crisis is spiralling out of control, with projections indicating it could hit N187.79 trillion by the end of 2025.
Our economic woes persist despite record borrowing. The subsidy removal, tariff hikes, and tax measures were supposed to boost revenue. Yet, the current administration has borrowed more than its predecessors. The disparity raises questions about resource allocation. Under Jonathan’s government, citizens enjoyed better living standards despite subsidy payments. Where’s the dividend of subsidy removal now?
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The president’s recent visit to Japan yielded a $238 million loan, raising eyebrows about this new strategy of loan diplomacy. It appears the administration’s global engagements focus more on securing loans than wooing investors as we were told. It is clear that sustainable development is not the agenda. The Japanese loan, we were told, will be used to strengthen the national power grid. We hope that the loan gets to the grid to save frequent collapse.
We need a new narrative. It’s disheartening that leaders often prioritise personal gain over solving Nigeria’s pressing issues. Instead of addressing problems, they master the art of blame-shifting and defending the status quo. President Tinubu’s claims of inheriting a bad situation ring hollow amidst unchecked governance costs and misallocated borrowed funds. Unrealistic projects drain resources, leaving citizens wondering about the true purpose of these investments.
Our problems are self-inflicted. Nigeria is blessed with huge potentials, but leadership is the major obstacle. To unlock progress, we need drastic reductions in governance costs across all levels – federal, state, and local. Tackling corruption head-on is also crucial. aBy plugging these leaks, government can fund meaningful development projects. It’s futile to keep borrowing when waste and graft persist.
Rather than sincerely face the situation on ground, government prefers to raise hirelings who are assisting in weaving misleading narratives, fuelled by government propaganda, that President Tinubu inherited an economy on the brink and has since performed a miraculous turnaround. However, a closer look at the facts reveals a different story. Nigeria is bleeding, and it is almost dead. We are battered and broken. The soul of our nation needs to be rescued and it is our duty to do that.
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It’s clear that we’re not done with borrowing yet. With a bloated cabinet and looming elections, the government needs funds to sustain its structure and ensure survival beyond 2027. Given Nigeria’s highly monetised electoral system, citizens are right to question whether borrowed funds will fuel electoral ambitions. With less than two years to go, more loans are likely on the horizon, driven by the government’s apparent reliance on external financing.
Our problems are self-inflicted. Nigeria is blessed with huge potentials, but leadership is the major obstacle. To unlock progress, we need drastic reductions in governance costs across all levels – federal, state, and local. Tackling corruption head-on is also crucial. aBy plugging these leaks, government can fund meaningful development projects. It’s futile to keep borrowing when waste and graft persist.
Comrade Amechi, a trade union activist, writes from Lagos.
