Tinubu’s $6.9B Loan Aimed at Poverty Reduction, Economist Says

Bongo Adi, an economics professor at the Lagos Business School, has characterized President Bola Tinubu’s $6.9 billion foreign loan as a tactic to combat poverty in the nation.

Adi reportedly revealed this on Wednesday, April 1, 2026, when making an appearance on The Morning Brief on Channels Television.

The President’s request for a $6.9 billion foreign lending facility was approved by the National Assembly on Tuesday.

40% of the cash must go toward capital projects included in the 2025–2026 budgets, according to a crucial part of the decision.

The Senate Committee on Local and Foreign Debt’s recommendation, which suggested the allocation to guarantee the loan directly supports infrastructure and development efforts, was adopted before the decision was made.

Speaking about the development, Adi connected the borrowing to initiatives to boost sectoral development and lower Nigeria’s poverty rates.

“Let’s translate that borrowing to increase sector development on poverty alleviation.” You will concur that Nigeria is currently experiencing levels of poverty that have never been seen in the country’s history,” he stated.

But he gave a bleak image of the current state of affairs, pointing out that the nation is going through unheard-of hardship.

“It appears that this government is overseeing the highest level of poverty in our nation’s history,” he continued.

The analyst clarified that logical economic factors influence the government’s borrowing decisions.

“The government is a rational agent just like individuals, so they are looking at how to maximize their returns at the least cost,” he stated.

“I believe that borrowing as much as possible is the government’s maximization challenge. They make it appear to be in their favor given their financial circumstances.

Adi added that Nigeria’s projected $50 billion in external reserves have contributed to increased creditor confidence.

He stated, “Everyone, even the creditors, has confidence that this government can repay because you have an external reserve of 50 billion.”

He claims that since long-term repayment commitments are usually stretched over a number of years, the government may not be unduly concerned about them.

He mentioned loan repayment schedules of five to ten years, implying that the incumbent officeholders might not be fully responsible.

As you can see, everything points to increased borrowing. You can’t stop it because, considering the logic involved, I believe the government should borrow money,” he said.

Adi admitted that although fiscal and macroeconomic reforms might be having some effect, the average Nigerian has not yet been greatly impacted.

“Given the time lag, once more with the collapse of infrastructure, it appears that the time lag keeps retracting, and we begin to see the cascade to the micro level to the ordinary man or woman on the street,” he stated.

He pointed out that the public’s impression of government policy is still shaped by widespread hardship.

“So this is the problem we have, the population’s suffering is getting worse right now, and that’s why people are not happy when they hear the government is borrowing more money,” he continued.

The economist also identified ongoing infrastructural issues as a significant barrier to productivity, especially in the power industry.

“Even though we appear to be doing well on the macro front, what can you say to that when there is no light and productivity is at an all-time low?” he asked.

He continued by saying that changes in the oil industry, which he claimed is still failing, are primarily responsible for the macroeconomic gains that have been noted.

Adi said that many Nigerians are still struggling with the fallout from important policy choices, such as the unification of the foreign exchange market and the elimination of gasoline subsidies.

He claims that although these reforms were important, they have continued to put pressure on businesses and households, making the population’s financial situation more dire.