A founding member of the All Progressives Congress (APC), Osita Okechukwu, has expressed concern over Nigeria’s escalating debt.
On Sunday, Okechukwu appealed to President Bola Tinubu to take immediate action to rescue Nigerians from a looming debt trap. He warned that the current debt burden jeopardizes the president’s Renewed Hope Agenda, preventing the country from achieving meaningful progress.
Okechukwu lamented that the increasing debt, including both domestic and foreign loans, threatens the nation’s economic stability. He pointed out that high interest rates on treasury bills, dollar-denominated loans, and short-term Eurobonds make it essential to restructure Nigeria’s fiscal policies. The APC member emphasized that the country’s current debt service obligations are unsustainable and need urgent attention.
In a statement he signed, Okechukwu referenced Benjamin Franklin’s saying, “He who goes a borrowing goes a sorrowing,” to support his position. He called on President Tinubu to establish a high-powered panel of inquiry to review Nigeria’s debt profile, uncovering any dubious or opaque transactions. Okechukwu stressed that a transparent review is critical to ensuring the country’s financial future.
According to Okechukwu, the massive debt service costs are draining resources that should be allocated to vital sectors like health, education, and infrastructure. He noted that Nigeria’s budget for defense, infrastructure, education, and health totals N14.97 trillion, which is lower than the N15.8 trillion earmarked for debt service. The former Director General of Voice of Nigeria argued that this disparity puts Nigeria’s democracy and development at risk.
Although Okechukwu acknowledged President Tinubu’s decision to remove the fuel subsidy, he criticized the ongoing heavy debt burden. He described the debt service obligations as the “new anti-production elephant in the room.” The APC leader also recalled how the fuel subsidy regime had links to corruption and mismanagement, citing a past investigation led by Dr. Ngozi Okonjo-Iweala.
Okechukwu further suggested that the president should revisit the files related to bad loans and fuel subsidy fraud, with a focus on recovering funds. He emphasized the need to return Nigeria to a productive economy by addressing these financial missteps. The APC member also recalled the debt relief Nigeria received under President Olusegun Obasanjo in 2005, which successfully canceled $35.994 billion in debt.
Despite the historical context, Okechukwu noted that Nigeria’s current debt stands at a staggering N121.67 trillion, or $91.46 billion USD. He argued that the only way to break free from the current debt trap is through fiscal restructuring. Okechukwu called for a multilateral panel of inquiry to ascertain Nigeria’s actual debt and seek potential debt cancellation.
The former Voice of Nigeria director urged President Tinubu to make bold decisions, even if they may be difficult. Okechukwu agreed with Tinubu’s call for bold action but argued that the solution lies in restructuring Nigeria’s debt and reducing borrowing to only essential infrastructure projects. He advocated for collaboration with international humanitarian groups like SUKUK to ensure a sustainable and productive economy for the country.
