By Juliet Ezeh
As the cost of living continues to rise across Nigeria, many citizens are increasingly concerned about how government borrowing decisions may further impact their daily lives.
At a roadside shop in Abuja, a petty trader, Musa, says he has been forced to adjust the prices of basic commodities several times in recent weeks due to rising costs.
“Everything is going up—transport, fuel, food. Customers complain, but we are also struggling,” he said.
His concerns reflect a broader national sentiment following the recent approval by the National Assembly of Nigeria of a fresh $6 billion external borrowing request by President Bola Tinubu.
The approval, granted after the President’s request was presented to both chambers of the legislature, allows the Federal Government to secure $5 billion through a structured financing arrangement with First Abu Dhabi Bank of the United Arab Emirates and an additional $1 billion facility backed by UK Export Finance and arranged by Citibank London.
According to the President, the loans are intended to support budgetary needs, finance priority infrastructure projects, and refinance existing debt obligations.
However, the development has renewed concerns about Nigeria’s growing debt profile. Data from the Debt Management Office indicates that the country’s public debt stood at over $110 billion as of December 2025, a figure expected to rise with the new borrowing.
Economic analysts note that while borrowing is not uncommon for developing economies, the sustainability of such loans depends largely on how effectively they are deployed.
They warn that increasing debt servicing obligations could limit government spending on essential sectors and indirectly affect citizens through higher taxes, tariffs, and inflationary pressures.
Part of the loan is expected to fund the rehabilitation of key port infrastructure, including the Lagos Port Complex and Tin Can Island Port.
Government officials say improving these facilities could enhance trade efficiency, reduce congestion, and lower the cost of imported goods over time.
Despite these projections, public skepticism remains, with many Nigerians questioning whether the benefits of such loans will translate into tangible improvements in their living conditions.
For Musa and others facing economic hardship, the implications of government borrowing are already being felt indirectly through rising prices and reduced purchasing power.
“We may not understand the details, but we feel the effects,” he said.
As Nigeria moves forward with the new loan arrangement, experts emphasize the need for transparency, accountability, and measurable outcomes to ensure that borrowed funds deliver meaningful economic benefits.
The decision, they say, presents both an opportunity for development and a test of fiscal responsibility in managing the nation’s growing debt burden.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.