By Kazeem Waris
The Human Rights Writers Association of Nigeria (HURIWA) has urged the National Assembly to stop President Bola Tinubu’s administration from contracting fresh foreign loans, warning that Nigeria risks mortgaging the future of generations yet unborn through mounting debt obligations.
The association said Nigeria’s growing dependence on external borrowing was becoming dangerous, insisting that the Federal Government must urgently review its borrowing strategy and account for the utilisation of existing loans before seeking additional facilities.
HURIWA’s call followed revelations in the World Bank International Debt Report 2026, which put Nigeria’s external debt at $145.02 billion as of December 2025, up from $83.21 billion in 2015.
The rights group said the increase of about $61.8 billion in 10 years was alarming, particularly amid rising poverty, unemployment, inflation and the declining purchasing power of millions of Nigerians.
In a press statement signed by its National Coordinator, Comrade Emmanuel Nnadozie Onwubiko, HURIWA urged Tinubu to heed former President Olusegun Obasanjo’s warning that excessive borrowing could destroy generations.
Obasanjo had described debt as worse than leprosy, warning that it destroys generations, during a symposium in Abeokuta, Ogun State, where he disagreed with Tinubu’s position that borrowing should not be a problem if government had the capacity to repay.
HURIWA said the former president’s warning deserved serious consideration, given the country’s rising debt profile and the growing resources being committed to servicing foreign obligations.
According to the World Bank report, Nigeria’s external debt comprises $62.4 billion in public and publicly guaranteed debt, $54.476 billion in private nonguaranteed debt and $28.139 billion in short-term obligations.
The association also expressed concern over the rising cost of debt servicing, noting that Nigeria’s debt-service-to-exports ratio increased by 9.6 per cent in 2025, while debt service relative to gross national income rose by 6.9 per cent.
It warned that the trend raised serious questions about the sustainability of the country’s borrowing strategy and the resources available for healthcare, education, infrastructure and other essential public services.
Particularly troubling to HURIWA was Nigeria’s $2.3 billion sovereign bond issuance in 2025, comprising a 10-year bond at an interest rate of 8.625 per cent and a 20-year bond at 9.125 per cent.
The group said the high interest rates charged by international private creditors should caution the government against excessive dependence on expensive foreign financing.
It also demanded full disclosure of Nigeria’s $5 billion Total Return Swap transaction in 2026, which reportedly involved a three-year maturity and collateralisation ratio of approximately 133 per cent.
Under the arrangement, Nigeria allegedly pledged domestic securities worth about $6.7 billion as collateral for the financing.
HURIWA warned that the transaction could expose the country to collateral, margin-call, refinancing and transparency risks, urging the Federal Government to disclose the securities pledged, repayment obligations, maturity terms and other conditions attached to the deal.
It said the World Bank’s warning about transparency in such financing arrangements should not be ignored, adding that undisclosed financial exposures could make it difficult to establish Nigeria’s actual debt position.
The association also questioned the rationale for seeking additional foreign loans despite the Federal Government’s claims of improved revenue following the removal of the petrol subsidy.
It challenged the administration to demonstrate how previous borrowings had translated into measurable improvements in the living conditions of ordinary Nigerians.
Tinubu has defended his administration’s borrowing plans, arguing that long-term loans are necessary to finance infrastructure, improve electricity supply, upgrade ports and support his ambition of building a $1 trillion economy by 2030.
But HURIWA maintained that infrastructure development should not become a justification for endless borrowing without transparent assessments of economic returns, repayment capacity and long-term consequences.
The group also cited concerns raised by the Nigeria Labour Congress over the Federal Government’s request to the National Assembly for approval to borrow $20.5 billion and €1.45 billion.
It urged lawmakers to exercise their constitutional oversight responsibilities and thoroughly scrutinise all fresh borrowing requests before granting approval.
HURIWA called on the National Assembly to demand a comprehensive account of existing loans, including how the funds were utilised, repayment schedules and the economic benefits delivered by projects financed through previous borrowings.
It further advocated an independent assessment of Nigeria’s overall debt exposure, including contingent liabilities and complex financing arrangements that may not be immediately reflected in conventional debt figures.
The association said Nigeria must begin building an economy driven by productive capacity, industrial development, exports, agriculture and efficient revenue generation rather than continuous foreign borrowing.
It warned that future generations should not be condemned to servicing debts accumulated by successive administrations without corresponding development benefits.
HURIWA therefore urged Tinubu to heed Obasanjo’s warning and halt further external borrowing until Nigeria’s existing debt obligations and borrowing strategy had undergone a transparent and independent review.
