As Nigeria grapples with its mounting debt concerns, Senator Orji Kalu has firmly defended the government’s decision to continue borrowing, warning that the nation’s economy is on the brink of collapse without external financing.
Kalu, a former Governor of Abia State and the current Senator for the ruling All Progressives Congress (APC), appeared on Channels Television’s Politics Today on Monday to address growing criticism over the country’s debt profile. His comments came in response to concerns regarding the National Assembly’s oversight of loan requests, which critics argue has been passive, even “rubber-stamped.”
“The truth is, if this economy does not borrow, it will collapse,” Kalu asserted, emphasizing the critical role borrowing plays in sustaining the nation’s economic stability. “That’s where we are,” he added, highlighting the precarious state of Nigeria’s fiscal position.
When questioned on whether lawmakers are adequately scrutinizing loan requests, Kalu defended the legislative process, insisting that the necessary oversight mechanisms are in place. “Of course, the Committee on Foreign Debt and Local Debt scrutinises them,” Kalu explained, distancing himself from the committee’s responsibilities. “The National Assembly does its job,” he reiterated.
A Closer Look at Nigeria’s Borrowing Plans
In April 2025, Nigeria successfully repaid a $3.4 billion loan under the International Monetary Fund’s (IMF) Rapid Financing Instrument, which was initially obtained during the COVID-19 pandemic. Despite this achievement, Nigeria’s debt burden continues to grow, with plans to borrow an additional $26 billion between 2025 and 2026 to address budgetary deficits and foster economic growth. This has sparked widespread criticism, with some accusing the National Assembly of rubber-stamping the executive’s borrowing requests.
Kalu, however, rejected these accusations, stressing that the legislative process has been thoroughly followed. “Any law or anything you see passed in the National Assembly has gone through the appropriate channels,” he said. “Once it takes its course, I’m satisfied. That’s the definition of lawmaking.”
The Senator also pointed to the recent passage of the tax bill as an example of the National Assembly’s due diligence. “We are very thorough. People just want to see us fighting with the executive. We are adults. We cannot fight,” Kalu added, acknowledging the challenges of balancing political differences for the greater good of the nation.
Economic Struggles and Policy Challenges
In addition to his defense of Nigeria’s borrowing strategy, Kalu addressed the ongoing economic hardships faced by many Nigerians, particularly following the removal of fuel subsidies in 2023 and the floating of the naira. While he commended President Bola Tinubu’s reform initiatives, Kalu admitted that the benefits of these changes have not yet reached the broader population.
“The macro side is coming, but the other downsides are not coming very well,” Kalu remarked, acknowledging that many Nigerians in lower-income brackets are still feeling the economic strain. He also attributed the slow pace of recovery to ongoing insecurity, which has disrupted agriculture and other critical sectors.
“It’s going to take another one to two years for the changes to take effect,” Kalu predicted. “Some people working with President Tinubu should be relieved of their duties,” he added, suggesting that a more effective leadership team may be needed to ensure quicker and more widespread recovery.
Conclusion
As Nigeria navigates these tumultuous economic times, Senator Orji Kalu’s defense of borrowing underscores the delicate balance between fiscal policy and economic stability. While the nation continues to face significant debt obligations, the government’s strategy of external borrowing remains a point of contention, sparking debate on the best path forward for Nigeria’s economic future.