Tinubu’s $21.5bn Loan Bid Risks Turning Nigeria into Another Egypt Under Khedive Isma’il- MDPCO

The Makinde-Daura Presidential Campaign Organisation (MDPCO) has condemned President Bola Ahmed Tinubu’s latest request for fresh foreign loans totalling $20.52 billion and €1.045 billion, warning that Nigeria risks repeating the economic crisis that engulfed Egypt under Khedive Isma’il in the 19th century.

The organisation accused the Tinubu administration of recklessly accumulating domestic and external debts without commensurate development, transparency or a credible repayment plan, warning that the growing debt burden threatens Nigeria’s economic sovereignty and the future of generations yet unborn.

In a statement signed by its Director of Strategic Communications, Richard Nnanna Ihediwa, on Wednesday, the MDPCO described the latest borrowing request, coming about 80 days before the presidential election, as troubling, particularly amid concerns over the government’s existing debt obligations.

It questioned the rationale for seeking additional loans when Nigeria’s public debt has reportedly risen to ₦166.7 trillion under Tinubu, demanding a clear explanation of how previous borrowings have been utilised and how the government intends to repay the mounting obligations.

According to the organisation, successive administrations have justified foreign borrowing on the grounds of infrastructure development, critical projects and budget financing, yet Nigerians have continued to grapple with worsening economic hardship and inadequate public services.

The MDPCO also questioned how the administration’s overlapping budget cycles had been funded, arguing that the government must account for the proceeds of previous loans before seeking further credit facilities.

“The nation’s insatiable appetite for foreign loans has reached alarming proportions. Every well-meaning Nigerian should be concerned about a government that continues to accumulate debts without demonstrating corresponding development, transparent utilisation of funds or a credible repayment plan,” the statement said.

The organisation recalled that in June 2023, the Tinubu administration secured a $750 million World Bank loan under the Power Sector Recovery Performance programme, intended to improve electricity supply nationwide.

It, however, argued that Nigerians continue to experience persistent power shortages, questioning the impact of the facility on electricity generation and distribution.

The MDPCO further cited a $500 million loan secured in June 2023 for institutional strengthening and women’s empowerment, asking the government to disclose the number of women who had benefited and the measurable results achieved.

It also listed an $800 million loan for conditional cash transfers in July 2023 and another $700 million facility in September of the same year, demanding greater transparency over the implementation and impact of the programmes.

The organisation said the administration obtained another $2.25 billion in June 2024 for economic stabilisation and growth-related reforms, but argued that the expected benefits had yet to translate into sufficient economic relief for Nigerians.

It also referenced loans obtained in 2025 for healthcare, education and human-capital development, including a reported $1.57 billion facility and another $500 million from the African Development Bank.

The MDPCO expressed concern over the Senate-approved borrowing plan in 2025, which it said involved $21.19 billion, €4 billion and ¥15 billion.

It specifically questioned the progress of the proposed $3 billion Eastern Railway Corridor, intended to link Port Harcourt with Maiduguri, arguing that Nigerians deserved clear information about the project’s implementation and the utilisation of funds allocated to it.

The organisation also cited Senate approvals in April 2026 for $6 billion to modernise the nation’s ports and another $1.5 billion for early-childhood development and household prosperity.

It argued that the scale of borrowing had become difficult to justify amid widespread concerns about food affordability, household welfare and the country’s out-of-school children crisis.

Drawing a historical parallel, the MDPCO warned that Nigeria could suffer a fate similar to that of Egypt under Khedive Isma’il, whose ambitious spending and dependence on foreign borrowing contributed to a severe debt crisis and the erosion of the country’s financial independence in the 19th century.

The organisation said the comparison should serve as a warning against excessive borrowing without a sustainable economic strategy, productive investments and clear accountability for public funds.

“It is unfortunate that President Tinubu is leaving behind a legacy of mounting debt rather than productive investments, shared prosperity and economic stability,” the statement said.

The MDPCO further accused the administration of transferring an excessive financial burden to future generations, insisting that Nigerians should not remain silent while continued borrowing threatens the country’s economic prospects.

It consequently called on Tinubu to withdraw the latest loan request and urged the National Assembly to reject it, arguing that lawmakers had a responsibility to protect the nation’s long-term financial interests.

“President Tinubu should immediately rescind this move to secure another foreign loan or be ready to contend with Nigerians. The National Assembly should save the situation and reassure Nigerians by rejecting the President’s fresh loan request. Nigeria is nobody’s personal fiefdom,” the statement added.

The organisation urged Nigerians to support the presidential candidate of the Allied Peoples Movement (APM), Engr. Seyi Makinde, in the forthcoming election, describing his RESET NIGERIA Agenda as an alternative to the Tinubu administration’s borrowing-driven economic approach.

It said Makinde’s proposed agenda would focus on restructuring the country, harnessing its resources, promoting national self-sufficiency and creating opportunities for sustainable economic growth.

The MDPCO maintained that a Makinde administration would prioritise a stronger economy, broader opportunities and improved prosperity, contrasting its proposed approach with what it described as the Tinubu government’s debt-dependent economic policies.

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