Prominent activist and lawyer, Maduabuchi Idam, has called on President Bola Tinubu to end Nigeria’s increasing dependence on foreign loans, warning that the country’s unchecked borrowing could lead to economic collapse.
Idam also urged the National Assembly to halt further approvals of Tinubu’s loan requests, describing the recent $2 billion loan proposal as a “charity bazaar” benefitting political elites rather than addressing national development.
Expressing his concerns, he lamented Nigeria’s growing reputation as the “Borrowing Giant” of Africa, noting that some economically weaker African nations are rejecting international loans in favour of strengthening internal revenue sources.
In a conversation with DAILY POST, Idam criticized the federal government’s lack of transparency and failure to implement proper monitoring mechanisms for loan disbursement.
Idam stated, “The $2 billion additional loan request by federal government without a transparent monitoring mechanism in disbursement will end as a charity bazaar in the pocket of political actors.
“As a citizen, I’m pensively traumatized to know that Nigeria is becoming the “Borrowing Giant” of Africa even as some less economically viable countries in Africa are proudly snubbing international loans and choosing to rely on their internal revenues for developing their countries.
“I’m curious or rather saddened that President Tinubu’s administration has developed an insatiable orgy for foreign loans instead of engaging in programs that will grow the nation’s economy as he promised.”
Idam argued that borrowing cannot be a sustainable path to economic recovery, pointing out that no country has successfully borrowed its way out of poverty.
He emphasized that while borrowing for genuine investment is justifiable, taking loans to fund non-essential expenses is detrimental to governance
“To think that the Tinubu administration in less than two years has secured loans worth $6.45bn without a corresponding project to justify it is not only disturbing but painful.
“I’m yet to learn of any nation around the world that borrowed its way out of poverty. The principle of borrowing for enjoyment or borrowing to service personal desire for luxurious lifestyle should not be encouraged in governance.
“While there is nothing wrong in borrowing for investment ( provided it is honest, genuine and transparent), there is everything wrong with borrowing for enjoyment.
“Unless, Nigeria wants to be perpetually indebted to its creditors, the National Assembly must not be charitable in its approval when next a request for loan is made by the President.
“Except President Tinubu is mindless about having Nigeria as a Nation crawl on its kneels while battling recession, the aimless borrowing has to end and the National Assembly must henceforth tarry from further approval of president Tinubu’s request for loans until there is a justification for the ones borrowed,” he said.
Idam urged both the president and lawmakers to prioritize fiscal responsibility, warning that continuous borrowing without accountability could leave Nigeria struggling with a deep recession and perpetual debt dependency.
