“Stop Giving Loans to Nigeria”: ActionAid, Others Protest Rising Debt

Nigeria’s borrowing debate has moved from budget documents to the streets.

ActionAid Nigeria, market women, university students and other civil society groups staged a protest at the Federal Ministry of Finance over the country’s rising debt stock and continued government borrowing.

The protesters called on lenders to stop extending loans to Nigeria, arguing that increasing debt creates a burden for citizens and future generations.

ValidViewNetwork reports that the protest reflects a wider public debate over whether borrowing is being converted into productive investment quickly enough to justify the obligations being accumulated.

Government borrowing is not automatically evidence of fiscal failure.

Countries borrow to finance infrastructure, cover temporary revenue gaps and support major development programmes.

ADVERTISEMENT

The more important question is what the borrowed money produces.

Where borrowing finances productive infrastructure, it may strengthen future revenue and economic capacity.

Where borrowed funds disappear into recurrent expenditure without creating comparable economic value, debt servicing can become an increasing pressure on public finances.

ValidViewNetwork had earlier reported on Nigeria’s continuing borrowing and the competing arguments over public debt.

The protesters’ demand also places responsibility beyond the Federal Government. Lenders, legislators, auditors, procurement agencies and citizens all have roles in ensuring that public borrowing is transparent and properly used.

The government, for its part, has the opportunity to answer the protest with figures: what has been borrowed, what has been spent, what projects were financed, how much has been repaid and what economic returns are expected?

The debt debate should therefore move beyond slogans. Nigeria needs borrowing that can be justified by measurable public value, transparent repayment obligations and credible economic returns, ValidViewNetwork reports.