Tinubu’s Cabinet Driving Nigeria Into Generational Debt: Alarming Rise in First Term

 In the span of just over two years since President Bola Ahmed Tinubu assumed office in May 2023, Nigeria’s public debt has ballooned to unprecedented levels, reaching a staggering N152.40 trillion as of June 30, 2025. This represents a sharp increase of N3 trillion in just three months, fueling widespread alarm that the administration’s fiscal policies are saddling future generations with an insurmountable debt burden. Critics argue that Tinubu’s cabinet, through aggressive borrowing and unchecked spending, is prioritizing short-term fixes over sustainable economic growth, potentially locking Nigeria into a cycle of dependency on international lenders.

The Alarming Debt Trajectory Under Tinubu

When Tinubu took the helm, Nigeria’s total public debt stood at approximately N77 trillion. Fast forward to mid-2025, and that figure has nearly doubled, driven by a combination of domestic and external borrowings. The Debt Management Office (DMO) reports that this surge includes new loans from multilateral institutions like the World Bank and IMF, as well as bilateral agreements. In the first half of 2025 alone, the government secured approvals for massive financing, including a $21 billion external borrowing plan for the 2025-2026 fiscal cycle, which the Senate greenlit in July.

Tinubu’s cabinet has justified these moves as essential for funding infrastructure projects, social welfare programs, and stabilizing the economy amid global headwinds. However, data from the first three quarters of 2024 shows that while revenues reached N14.55 trillion, a whopping N8.94 trillion—over 60%—was funneled into debt servicing. This leaves scant resources for development, raising questions about the efficacy of the administration’s “Renewed Hope” agenda.

Cabinet Decisions Fueling the Debt Spiral

At the heart of this debt accumulation are key cabinet members, including Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso, whose policies have emphasized deregulation and market reforms. The removal of fuel subsidies in 2023 and the floating of the naira led to immediate economic shocks, including inflation peaking at over 30% and a weakened currency. To cushion these impacts, the government has resorted to borrowing, with recent requests including $2.3 billion in new loans and a $500 million debut global sukuk issuance.

Opposition figures and economists point to a lack of fiscal prudence. For instance, the 2025 budget proposal, still under debate, anticipates significant deficit financing through debt. Critics like former Vice President Atiku Abubakar have labeled this approach “reckless,” arguing that it mirrors the debt traps seen in other African nations. The cabinet’s approval of these borrowings without corresponding revenue reforms—such as broadening the tax base or curbing corruption—exacerbates the issue, potentially leading to higher interest payments that consume future budgets.

The Generational Impact: A Legacy of Burden

The term “generational debt” isn’t hyperbole; it refers to obligations that outlive the current administration and burden Nigerians for decades. With debt-to-GDP ratios climbing toward 50%, experts warn of reduced fiscal space for education, healthcare, and youth employment—sectors already strained by a population boom. Future generations could face austerity measures, higher taxes, or even debt restructuring, reminiscent of the Paris Club negotiations in the early 2000s.

Moreover, reliance on foreign debt exposes Nigeria to currency risks and geopolitical pressures. As oil revenues fluctuate and non-oil sectors lag, the debt service ratio could exceed 100% of revenues by 2030 if trends continue, according to some projections. This scenario not only stifles growth but also erodes public trust, as seen in recent protests over economic hardship.

Calls for Accountability and Reform

Civil society groups and international observers are urging transparency in debt management. The administration has defended its strategy, with Tinubu highlighting investments in agriculture, transportation, and digital infrastructure as pathways to self-sufficiency. Yet, without stringent oversight—such as independent audits of loan utilization—the risk of mismanagement looms large.

As Nigeria approaches the midpoint of Tinubu’s first term, the cabinet must pivot toward revenue diversification, anti-corruption drives, and prudent spending to avert a debt crisis. Failure to do so could cement this era as one where short-sighted policies mortgaged the nation’s future.

In conclusion, while Tinubu’s vision promises renewal, the rapid debt accumulation under his watch tells a different story. Nigerians deserve policies that build wealth, not burdens—one that ensures prosperity for all generations, not just the present.