…Says Nigeria’s rising debt burden requires caution
The Allied Peoples Movement (APM) has urged the World Bank and other international financial institutions to reject the Federal Government’s proposed fresh $1.5 billion financing, warning that additional borrowing could further increase Nigeria’s debt burden.
The party’s National Publicity Secretary, Abubakar Yusuf, made the call in a statement on Tuesday, following reports that the Federal Government is discussing three proposed World Bank facilities worth $500 million each.
The proposed financing, according to World Bank documents cited by The PUNCH, is targeted at climate resilience, social protection and early childhood development. One of the facilities, a $500 million additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project, is scheduled for consideration by the World Bank board on October 29, 2026.
But the APM argued that the government should first demonstrate how existing borrowings are being managed before taking on additional credit.
Yusuf said the party was concerned about Nigeria’s rising public debt, which stood at ₦166.79 trillion at the end of June 2026, according to the latest figures from the Debt Management Office.
The party questioned the rationale for continued borrowing amid the revenue and economic reforms undertaken by the Federal Government, including the removal of the petrol subsidy.
It also criticised the government’s economic policies, alleging that they had contributed to pressure on the naira, weakened purchasing power and increased the cost of living for many Nigerians.
The APM further questioned whether previous loans secured by successive administrations had translated into sufficient improvements in infrastructure, employment and living standards.
It said Nigerians had faced higher costs of food, transportation, electricity, healthcare and other basic necessities since 2023, while calling for greater transparency in the utilisation of borrowed funds.
The party also cited concerns over food insecurity, arguing that the country’s economic challenges required greater attention to productive investment and improved social outcomes rather than continued accumulation of debt.
The APM urged the World Bank, International Monetary Fund and other potential lenders to carefully assess Nigeria’s debt position and the proposed uses of any new financing before approving additional facilities.
It maintained that any fresh borrowing should be tied to clearly defined projects, transparent utilisation and measurable benefits to Nigerians.
The party also criticised claims by the ruling All Progressives Congress (APC) about the performance of the economy, saying such claims should be measured against the experiences of citizens and verifiable economic indicators.
The APM said it would continue to advocate transparency, fiscal discipline, productive investment and prudent management of public resources, adding that its presidential candidate, Engr. Seyi Makinde, would pursue those priorities if elected.
It said an APM-led government would focus on strengthening Nigeria’s productive sector, expanding economic opportunities and improving living standards.
The party’s latest position comes amid wider debate over Nigeria’s rising debt stock and the government’s continued use of multilateral financing to fund development and economic programmes. The proposed $1.5 billion World Bank package has not yet become a concluded loan, as the facilities remain at different stages of preparation and approval.
