Nigeria’s Senate Declares Borrowing Unavoidable

Nigeria’s Senate Declares Borrowing Unavoidable

Date: February 9, 2026 Location: Abuja, Nigeria

In a sobering declaration that underscores Nigeria’s fiscal challenges, the Senate has warned that borrowing remains an unavoidable reality for the country’s economic survival.

This statement comes amid scrutiny of the Federal Government’s 2026 budget proposal, which includes a staggering ₦17.89 trillion borrowing plan to fund critical national expenditures.

Senator Adeola Olamilekan, Chairman of the Senate Committee on Appropriations, made the announcement during a public hearing on the 2026 Appropriation Bill. He emphasized that while borrowing is not ideal, it is necessary given Nigeria’s current revenue constraints and the urgent need to sustain government operations and development projects.

The Senate, however, stressed that future borrowing must be accompanied by strict accountability and transparency measures.

The warning reflects growing concern over Nigeria’s debt trajectory, especially following the Senate’s approval of President Bola Ahmed Tinubu’s external borrowing plan of over $21 billion in 2025.

Critics, including the African Democratic Congress (ADC), have condemned the scale of borrowing, arguing that it far exceeds the levels seen under former President Muhammadu Buhari and risks mortgaging the country’s future.

Despite these criticisms, the Senate maintains that borrowing is a strategic tool to stabilize the economy, provided it is managed responsibly. Lawmakers have pledged to scrutinize every budget item and ensure that ministries, departments, and agencies (MDAs) adhere to fiscal discipline.

Agencies benefiting from service-wide votes without clear accountability were particularly warned that such practices would no longer be tolerated.

The Senate’s stance reveals a delicate balancing act: navigating the pressures of economic stagnation, inflation, and currency volatility while attempting to fund national priorities.

For many Nigerians, the debate over borrowing is not just about numbers, it is about trust, governance, and the long-term viability of the country’s economy.

As the 2026 budget deliberations continue, the Senate’s warning serves as a reminder that Nigeria’s fiscal future hinges not only on how much it borrows, but on how wisely those funds are spent