Massive Borrowing Puts Nigeria’s Future at Risk

The country’s bloated debt portfolio is the outcome of decades-long economic mismanagement.
Among the many dangers threatening the very foundation of the Nigerian state is the government’s increasing reliance on internal and external borrowing to finance its operations. In recent weeks, various international organizations, private entities, senior government officials, and former government functionaries have decried the Buhari administration’s appetite for borrowing, and warned about the risk to the Nigerian state of allowing the situation to get out of hand. These include the International Monetary Fund (IMF), which projected that “the Nigerian government may spend nearly 100 percent of its revenue on debt servicing by 2026;” the World Bank, which warned that the country’s debt, while seemingly sustainable, is “vulnerable and costly;” and the Nigerian Economic Summit Group (NESG), a body of private sector leaders, which warned against what it saw as the prospect of creating “a debt burden for future governments.”