The Labour Party (LP) is urging the National Assembly to put a stop to President Bola Tinubu's latest loan proposals, as the country's national debt continues to rise sharply.
In a statement made in Abuja on Tuesday, LP’s Interim National Publicity Secretary, Tony Akeni, expressed concern over the President's insistence on borrowing more from the World Bank, despite the troubling debt levels and worsening economic situation.
“To understand why Speaker Abbas should be alarmed, we need to look closely at the facts,” Akeni stated, pointing to Nigeria's growing fiscal crisis. He referred to data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN), which reveal that within the first quarter of 2025, Nigeria's total public debt surged from ₦121.7 trillion in December 2024 to ₦149.39 trillion. This staggering rise exceeds the 40 percent debt-to-GDP limit set by the nation’s fiscal laws.
“Even more concerning is that during this same period, the debt-to-GDP ratio climbed to 52%, well above the safe threshold of 40% established by our own financial guidelines,” Akeni added.
The LP spokesperson also pointed out the heavy burden that debt servicing is placing on the nation’s budget. “What makes the situation more dire is that in the past nine months, Nigeria spent ₦8.93 trillion, or $6.2 billion, just to service its debts,” he highlighted. “This figure represents 61% of the country's total revenue of ₦14.55 trillion during that timeframe, all going towards paying off debts!”
Akeni referenced public comments made by Speaker Abbas, noting that even he acknowledged the seriousness of the debt crisis. “While trying to preserve his party's image, Speaker Abbas could not deny that we are significantly breaching the debt ceiling and jeopardizing our revenue security as dictated by the law,” he remarked.
In closing, Akeni condemned President Tinubu's push for more foreign loans at a time when inflation, poverty, and unemployment are on the rise across the nation. He argued that such requests demonstrate a disconnect from the everyday realities faced by citizens. “President Tinubu’s call for new loans from the World Bank, amidst skyrocketing debt, inflation, and poverty, is a clear indication that this administration is out of touch with the struggles of ordinary Nigerians,” Akeni concluded.
The Labour Party's stance comes as economic experts and civil society groups are increasingly concerned about Nigeria's debt sustainability, advocating for reforms in public spending and an end to reckless borrowing.