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The Centre for Social Justice, Equity, and Transparency (CESJET) has backed the Federal Government’s proposed $2.2 billion external loan, citing its critical importance to Nigeria’s developmental goals.
Speaking to journalists in Abuja, CESJET Convener Emeka Theodore emphasised that the funds are pivotal to infrastructure development, economic diversification, and institutional reform.
“Rejecting this proposal is not about national interest but populist posturing that defies logic,” Theodore said. The loan, he explained, aligns with global fiscal practices and will not overburden Nigeria’s economy.
“Our debt-to-GDP ratio of 35% is far below the IMF’s recommended ceiling of 55% for developing economies. Nigeria’s financial capacity to borrow responsibly is evident compared to peers like Ghana and Kenya with ratios above 60%,” Theodore added.
Highlighting Nigeria’s consistent repayment record, Theodore noted that President Tinubu’s administration has instilled confidence among foreign lenders through strategic debt management.
Projects funded by past loans, such as the Second Niger Bridge and Lagos-Ibadan railway, exemplify the judicious application of borrowed funds. CESJET also warned against the consequences of denying the loan request.
“Abandoning this proposal risks shelving crucial projects like the Mambilla Hydropower Project, halting healthcare and educational advancements, and missing opportunities for economic growth and job creation,” Theodore stated.
The group addressed critics of the borrowing plan, urging them to abandon “misguided populist stances” that jeopardise national progress.
“Opposing this loan without economic reasoning undermines Nigeria’s development and leaves vital projects underfunded,” CESJET asserted.
CESJET insists that the $2.2 billion loan will catalyse investments in digital infrastructure, mechanised farming, and tax efficiency, further diversifying Nigeria’s revenue streams and reducing its reliance on oil.
“This is not a luxury but an economic necessity to secure Nigeria’s future,” Theodore concluded, calling on lawmakers to prioritise the nation’s interests over partisan sentiments.