PDP faction challenges FG to explain benefits of N159.35tn debt

The Tanimu Turaki-led faction of the Peoples Democratic Party (PDP) has challenged the Federal Government to explain how its huge borrowings have benefited Nigerians, particularly in tackling insecurity, unemployment and the country’s infrastructure problems.

The PDP’s Interim National Working Committee (INWC) said Nigeria’s rising debt under President Bola Tinubu’s All Progressives Congress (APC)-led government was becoming a major concern.

Nigeria’s total public debt stood at about N159.35 trillion as of March 31, 2026, according to figures from the Debt Management Office (DMO).

The party made its position known in a document obtained by Nigerian Tribune in Abuja on Sunday. It questioned the continued reliance on loans despite the country’s weak revenue base.

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“There is something increasingly unsettling about the economic philosophy of the Bola Ahmed Tinubu administration: whenever government spending appears to outrun available revenue, the instinct seems to be to look for another loan,” the PDP said.

The party, however, said borrowing was not necessarily wrong, as governments could take loans to fund infrastructure, support economic growth, cover temporary revenue shortfalls and finance projects expected to benefit future generations.

It said the important questions were how much the government had borrowed, the cost of the loans, what they were used for and whether they had improved the country’s economic position.

The PDP noted that part of the rise in the debt figure was caused by the depreciation of the naira, which increased the naira value of Nigeria’s foreign-currency debts.

It, however, argued that this did not change the bigger concern that the country’s financial obligations were increasing while government revenue remained insufficient.

The party also referred to President Tinubu’s statement in May 2026 that Nigeria would spend about $11.6 billion on debt servicing in 2026, compared with $5.15 billion in 2025.

It said the 2026 budget allocated N15.8 trillion for debt servicing out of a total budget of N68.32 trillion.

According to the PDP, money spent servicing debts cannot be used for roads, schools, hospitals, security, job creation and other public needs.

“It is not enough for government officials to announce that borrowed funds will finance infrastructure. Nigerians deserve to know precisely which projects are being financed, how much they cost, when they will be completed and what economic returns they are expected to generate,” it said.

The party also questioned the government’s plans for additional foreign borrowing, including a proposed $21.5 billion borrowing programme in 2025 and a later National Assembly approval for a $2.85 billion foreign loan.

The PDP said refinancing existing debts was not automatically evidence of financial mismanagement, but warned against repeatedly borrowing to repay previous debts.

It described the situation as potentially becoming a practice of borrowing “to keep the debt machine running”.

The party called on the Federal Government and National Assembly to provide details on the purpose, cost and measurable benefits of major loans.

“The Nigerian people deserve more than assurances that the loans are necessary. They deserve evidence,” the PDP said.

The Federal Government, however, has continued to defend its borrowing, saying the funds are being used to support economic reforms, reduce hardship and finance long-term development.

The administration has pointed to programmes such as social safety nets, student loans, support for small businesses and major infrastructure projects, including the Lagos-Calabar Coastal Highway.

The government has also argued that borrowing helped it support vulnerable Nigerians following the removal of the petrol subsidy and foreign exchange reforms.

President Tinubu said the cash-transfer programme was designed to “cater for 15 million households” and was “specifically aimed at uplifting the poor and vulnerable.”

The Presidency has also said the cash transfers had reached “over 5.7 million households”, describing the programme as part of measures to cushion the effects of economic hardship.