The President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has criticised the request by Nigerian President Bola Tinubu to the National Assembly to approve fresh external borrowing of $20.5 billion and €1.45 billion.
The Labour leader told Channels Television on Thursday that the basis for the loan was not clear to the Labour movement.
“If you come out to tell us that the petrol 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 (IMF) and the World Bank and other agencies when there is enough money?”
He argued that the 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.
He added that the NLC does not approve loans and does not even know when the money is paid into the pocket of the Nigerian government.
He urged every Nigerian and agencies to take responsibility for the matter and ask why the Nigerian 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.
Channels Television had in April, reported that the Nigerian 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 Nigerian government is faced criticism over its continued reliance on loans despite the removal of the petrol subsidy, which was expected to free up resources for development.
GIK/APA