‘Something is not adding up’ - Analyst questions Tinubu’s $20.5bn loan request

Economic and financial analyst Emmanuel Kelvin has raised questions about President Bola Tinubu's administration requesting $20.5 billion and €1.45 billion in new external borrowing. During an interview on Channels Television, Kelvin pointed out that the rising price of crude oil, at $145 per barrel, should result in increased government revenue for Nigeria.

This comment follows the controversy surrounding Tinubu's request for a $20.5 billion and €1.45 billion supplementary borrowing package to support infrastructure, agriculture, and education projects. Kelvin wondered why the federal government is seeking additional loans when the high price of crude oil could potentially increase Nigeria's revenue from oil exports.

He expressed concern over the relationship between rising crude oil prices and the government's borrowing plans, stating, "So, if crude oil prices are this high and you are supposed to get revenue accretion from higher crude oil prices, why are you going to borrow $20bn for infrastructure, agriculture and education? Something is not adding up."

The proposed borrowing package, reported by DAILY POST, consists of $20.5 billion and €1.45 billion in supplementary financing. However, the plan has elicited reactions from Nigerians, including opposition leaders. Former presidential candidate Atiku Abubakar of the African Democratic Congress, ADC, has urged the Senate to demand clarification from Tinubu's administration before approving the borrowing request. Arise Television anchor Oseni Rufai has also criticized President Bola Tinubu's fresh loan request.