Nigeria’s proposed $21.7 billion foreign borrowing plan has renewed concerns about how the Federal Government manages public debt, with attention shifting to the level of transparency and accountability surrounding the proposed loans.
The borrowing proposal under President Bola Tinubu’s administration has highlighted concerns about whether Nigerians and relevant oversight institutions are being given enough information to understand how the money will be spent and how the country intends to repay it.
Experiences from other African countries have also brought the issue into focus, with their approaches to monitoring public borrowing offering useful lessons for Nigeria.
A major concern is the need for detailed information about proposed loans, including the specific projects they will finance, their expected economic benefits, repayment arrangements and the institutions responsible for monitoring their implementation.
Without proper disclosure, there are fears that large borrowing programmes could increase the country’s debt burden without delivering the expected improvements in infrastructure, economic growth and public services.
The situation has also raised questions about the role of the National Assembly and other relevant institutions in examining government borrowing proposals before approval.
For Nigeria, stronger oversight would mean ensuring that every borrowed dollar is tied to clearly identified projects, with regular reports showing how funds are released, utilised and accounted for.
The experience of other African economies suggests that public debt management should go beyond securing loans. Governments must also establish effective monitoring systems, provide accessible information and ensure that borrowing decisions produce measurable benefits for citizens.
With Nigeria considering another major external borrowing programme, the debate is increasingly centred on whether the country has adequate safeguards to prevent waste, poor project execution and further pressure on public finances.
Ultimately, the success of the proposed $21.7 billion borrowing plan will depend not only on how much money the government can raise but also on how transparently and responsibly the funds are managed.
