$21.7bn Fresh Loan: Debt Service May Gulp Over 100% Of Revenues, Economists Warn

…Say plan threatens naira, reserves, fiscal stability
BY BUKOLA ARO-LAMBO AND OLUSHOLA BELLO Lagos
Economic analysts have warned that the federal Government’s plan to take on fresh external loans of about $21.7 billion could push the cost of servicing debt beyond 100 per cent of government revenue, with serious consequences for the naira, the country’s foreign exchange reserves and its fiscal stability.
The proposed borrowing, totalling $20.52 billion and €1.05 billion for 2026 and 2027, was presented to the Senate by President Bola Tinubu on Tuesday.
The analysts, who spoke with LEADERSHIP, said it raises hard questions about revenue mobilisation, the efficiency of previous loan...