An economics professor at Lagos Business School, Bongo Adi, has described President Bola Tinubu’s newly secured $6.9 billion foreign loan as part of efforts to combat poverty in Nigeria.
Adi made the remarks on Wednesday, April 1, 2026, during an appearance on Channels Television’s The Morning Brief, according to Naija News.
The National Assembly had earlier approved the president’s request for the external borrowing, with a directive that 40 percent of the funds be invested in capital projects outlined in the 2025/2026 budgets. The approval followed a recommendation by the Senate Committee on Local and Foreign Debt, aimed at ensuring the loan supports infrastructure and development.
Commenting on the move, Adi said the borrowing is intended to drive sectoral growth and ease poverty levels, noting that Nigeria is currently facing an unprecedented rise in hardship.
He, however, expressed concern over worsening living conditions, stating that the country appears to be experiencing its highest poverty levels in history under the current administration.
According to the economist, the government’s decision to borrow is based on rational economic considerations, as it seeks to maximise benefits while managing costs. He added that Nigeria’s external reserves—estimated at about $50 billion—have strengthened creditor confidence in the country’s ability to repay.
Adi also pointed out that long-term repayment structures, typically spanning five to ten years, may reduce immediate pressure on current officeholders, making continued borrowing more likely.
While acknowledging that some macroeconomic reforms may be showing results, he noted that their impact has yet to significantly improve the lives of ordinary Nigerians, with widespread hardship shaping public sentiment.
He further highlighted persistent infrastructure challenges, particularly in the power sector, as a major drag on productivity, despite modest gains at the macroeconomic level driven largely by the oil sector.
The economist added that many Nigerians are still feeling the effects of key policy changes, including the removal of fuel subsidies and the unification of the foreign exchange market—reforms he said, though necessary, have intensified economic pressure on households and businesses.