The rapid surge in Nigeria’s domestic debt to a staggering N70.4 trillion is raising serious concerns about the sustainability of President Bola Ahmed Tinubu’s “Renewed Hope” agenda.
The sharp 10.7% rise in the debt stock within a single quarter, as reported by the Debt Management Office (DMO), has sparked widespread debate over the country's economic direction.
Development advocate and public affairs commentator, Comrade Wilson Macaulay, who had previously highlighted the challenges facing the Tinubu administration, argues that the latest debt figures confirm the fears many Nigerians had about the viability of the president’s economic promises.
“When President Tinubu launched the 'Renewed Hope' agenda in 2023, it was met with cautious optimism,” Macaulay writes.
“But two years on, the nation is grappling with deepening inflation, a depreciating naira, widespread hunger, and now, an overwhelming debt burden.”
The domestic debt comprises instruments such as Federal Government bonds, treasury bills, and FGN savings bonds. Experts warn that the ballooning debt servicing costs are depleting national revenues, leaving little room for capital investment or meaningful social programs.
Dr. Ken Ife, a senior policy advisor and development economist, noted in a recent interview that the agenda is faltering under poor policy implementation and economic misalignment.
“With a domestic debt of N70.4 trillion, we are heading into a fiscal storm unless we urgently reprioritize spending and boost revenue,” he said.
The Nigerian Labour Congress (NLC) has also questioned the government’s ability to fulfill promises of social protection, employment, and wage increases, given that over 90% of government revenue is now funneled into debt servicing and recurrent expenditure.
Moreover, key economic reforms introduced by the administration—such as the removal of fuel subsidies and the floating of the naira—have yet to deliver tangible benefits. Instead, they have intensified public frustration amid soaring living costs.
Critics argue that Nigeria's borrowing model, heavily tilted towards consumption rather than production, is a major contributor to the current crisis. While domestic borrowing avoids foreign exchange risk, it still poses macroeconomic dangers such as inflation, high interest rates, and private sector crowding out.
Renowned political economist Professor Pat Utomi summed up the public sentiment: “We cannot borrow our way out of poverty. Right now, all I see is a borrowed hope.”
The mounting debt is also creating political challenges for the Tinubu administration. Civil society groups, opposition voices, and youth movements are becoming increasingly vocal, questioning the competence of the president’s economic team. Calls for a cabinet reshuffle are growing louder.
On social media, hashtags like #BorrowedHope and #DebtOverload are trending, reflecting a groundswell of disillusionment with the administration's fiscal management.
To reverse course, economists are urging the government to embrace transparency in its borrowing practices and implement clear strategies for revenue diversification. Emphasis is being placed on growing non-oil sectors such as agriculture, digital technology, and manufacturing.
Former Central Bank of Nigeria Deputy Governor Kingsley Moghalu recently stated, “The time for political sloganeering is over. What Nigeria needs now is economic intelligence and reforms that match the realities of our debt-ridden economy.”
As the debt crisis deepens, the gulf between policy promises and on-the-ground realities continues to widen. For President Tinubu, the question remains: can the Renewed Hope agenda be salvaged—or has it become, as some fear, little more than a borrowed dream?
— Comrade Wilson Macaulay is a correspondent with Daily Independent Newspaper, a development advocate, and public affairs commentator. He writes from Warri, Delta State.
