Former House of Representatives member, Dachung Bagos has raised concerns over Nigeria’s rising debt profile following the Senate’s approval of President Bola Tinubu’s ₦1.77 trillion ($2.2 billion) loan request.

Reacting to the approval in an interview on Thursday, Bagos criticized the lack of clear repayment strategies as he pointed out Nigeria’s low production, industrialization, and export capabilities.

Bagos who represented Jos South/Jos East stressed that Nigeria is not a producing country and it will be difficult to pay back the loan.

The former lawmaker said the country’s borrowing ratio is getting high and believes with the tax reforms by President Tinubu expected to come into full swing next, Nigerians may be burdened.

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Bagos warned that the country’s increasing borrowing, coupled with upcoming tax reforms could impose heavier financial burdens on citizens.

The loan is part of a plan to finance the ₦9.7 trillion deficit in the 2024 budget.

This has further strained debt servicing costs, which reached $3.58 billion in the first nine months of 2024, according to the Central Bank of Nigeria.

“You are collecting loans, where are the templates? What are the templates for repayment of those loans? We’re not a producing nation. Nigeria is not industrialized and also not an exporting nation”

“So, a lot of issues are wrong with our loans. You borrow to take breakfast, borrow to take lunch, borrow to take dinner every day, borrow to pay your children’s school fees, borrow to do every single thing.

“How are you going to pay those loans,” he stated