Nigerian union challenges $20.5 billion in external loans
By the AFREEQUE newsroom, based on Ghanaian Chronicle
The Nigeria Labour Congress, Nigeria’s main trade union, is challenging President Bola Tinubu’s request for new external loans of $20.5 billion and €1.45 billion. Its president, Joe Ajaero, says the level of public revenues and rising oil prices make the loans unjustified, according to the Ghanaian Chronicle.
Nigeria Labour Congress (NLC) president Joe Ajaero has challenged President Bola Tinubu’s request for approval to take out new external loans worth $20.5 billion and €1.45 billion. The union says the rationale for the borrowing is unclear, Ajaero said on Channels Television on Thursday.
Ajaero asked why the government continues to borrow from the International Monetary Fund, the World Bank and other bodies when the removal of the fuel subsidy has increased public revenues. He also noted that oil prices are above $100 a barrel, compared with a benchmark of $70 in the 2026 budget, due to the crisis between the United States and Iran.
The NLC president said growing debt was harming the country. He urged Nigerians and relevant bodies to hold the government to account, adding that if the National Assembly rejected the request, the federal government would be unable to obtain the loans.
The controversy is part of a debate over infrastructure financing and the burden of debt. In April, the government increased its planned borrowing for 2026 by 11.31 trillion naira to 29.2 trillion, with a projected budget deficit of 31.46 trillion and 15.81 trillion naira allocated to debt servicing. The Senate is considering Tinubu’s borrowing request, after criticism from Atiku and the Nigerian president’s defence of the plan.
