President Bola Tinubu’s Renewed Hope Agenda is in jeopardy due to Nigeria’s escalating debt burden, according to a senior APC member.
On Sunday, Osita Okechukwu, a founding member of the All Progressives Congress (APC), warned that the nation’s growing debt crisis threatens to derail the president’s plans for economic recovery and development. He urged Tinubu to act swiftly to prevent Nigeria from falling deeper into a debt trap.
Okechukwu expressed grave concerns over Nigeria’s rising debt, both domestic and foreign, which is increasingly straining the nation’s financial resources. He highlighted the burden of high interest rates on treasury bills, dollar-denominated loans, and short-term Eurobonds, all of which make urgent fiscal restructuring necessary to avoid further economic damage. The former Director General of Voice of Nigeria stressed that the country’s unsustainable debt service obligations are now undermining vital national projects.
In a statement he signed, Okechukwu appealed to President Tinubu to form a high-powered panel to investigate Nigeria’s current debt situation and uncover any questionable financial dealings. He cited Benjamin Franklin’s famous warning, “He who goes a borrowing goes a sorrowing,” emphasizing the importance of transparency and accountability in managing the nation’s financial affairs.
Okechukwu pointed out that Nigeria’s debt crisis is draining resources that should be used for critical sectors like health, education, and infrastructure. He noted that the combined budget for defense, infrastructure, education, and health — N14.97 trillion — is less than the N15.8 trillion earmarked for debt service, a disparity that he said threatens both Nigeria’s democracy and its economic future.
Although Okechukwu acknowledged the removal of fuel subsidies as a positive step, he criticized the overwhelming debt obligations that continue to stifle Nigeria’s economic growth. He referred to debt service as the “new anti-production elephant in the room,” arguing that the nation’s resources are being drained, preventing the government from investing in essential services.
The APC member also pointed to corruption within the previous fuel subsidy regime, referencing investigations led by Dr. Ngozi Okonjo-Iweala, and urged the president to revisit files related to bad loans and subsidy fraud. Okechukwu suggested that recovering lost funds could help return Nigeria to a more productive economic state.
Nigeria’s current debt stands at N121.67 trillion, or $91.46 billion USD, a figure Okechukwu described as unsustainable. He reiterated that the only way to escape the nation’s debt trap is through fiscal restructuring and a thorough review of the country’s debt profile. He called for a multilateral panel of inquiry to assess Nigeria’s debts and explore the possibility of debt cancellation, much like the debt relief achieved under President Olusegun Obasanjo in 2005.
Finally, Okechukwu urged President Tinubu to make bold decisions at this critical juncture. While agreeing with the president’s call for tough choices, Okechukwu stressed that restructuring Nigeria’s debt and limiting borrowing to critical infrastructure projects should be the top priority. He also suggested that collaboration with international organizations like SUKUK could help secure the country’s long-term economic future.
