NLC Challenges Tinubu’s Fresh External Loan Request

The National President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has criticised President Bola Tinubu’s request to the National Assembly to approve fresh borrowing for external loans worth $20.5 billion and €1.45 billion.

While appearing on Channels Television’s The Morning Brief on Thursday, Ajaero stated that the basis for the loan was not clear to the Labour movement.

“If you come out to tell us that the subsidy is gone, that you are making more money and then you are giving more money to states, what is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?”

The Labour leader argued that the International Monetary Fund (IMF), World Bank, and other agencies lending money to the Nigerian government are doing the country a disservice.

According to him, the debt profile is killing the country.

He stated that all oil-producing states are now making more money due to the Middle East conflict.

“If the 2026 budget was prepared with crude oil price benchmarked at $70 per barrel and now sells above $100 per barrel due to the US-Iran crisis, should this country still be collecting loans?”, Ajaero asked.

Responding to the position of the Labour Congress, Ajaero said that NLC does not approve loans and does not even know when the money is paid into the pocket of the federal government.

He urged every Nigerian and agencies to take responsibility for the matter and ask why the federal government is collecting another loan, adding that if the National Assembly rejects the loan, the Federal government will not get any loan.

The latest request comes amid growing debate over the Tinubu administration’s borrowing plans and the country’s rising debt burden.

In April, Channels Television reported that the Federal Government increased its planned borrowing for 2026 by ₦11.31 trillion to ₦29.20 trillion, while projecting a fiscal deficit of ₦31.46 trillion and debt-servicing costs of ₦15.81 trillion.

The government has faced criticism over its continued reliance on loans despite the removal of the petrol subsidy, which was expected to free up resources for development.

The Nigeria Democratic Congress (NDC) presidential candidate Peter Obi warned in April that Nigeria was heading towards a debt crisis, arguing that the government had continued borrowing despite the subsidy removal. He also raised concerns about outstanding payments to contractors and the implementation of capital projects.

The Emir of Kano, Muhammadu Sanusi II, similarly questioned why the government continued to borrow after ending subsidy payments, arguing that Nigerians should see the benefits of the policy in improved public finances.

However, the Federal Government has defended its borrowing strategy, saying the funds are intended to support critical infrastructure and other development priorities.