The Nigeria Labour Congress (NLC) has questioned why the Federal Government continues to seek additional foreign loans despite claims of improved revenue following the removal of the petrol subsidy.
NLC President, Joe Ajaero, raised the concern on Tuesday during an appearance on Channels Television’s _The Morning Brief_, where he challenged the government to justify its continued borrowing from international financial institutions.
Ajaero specifically questioned the rationale for approaching institutions such as the International Monetary Fund (IMF) and the World Bank for fresh financing when the government has repeatedly stated that subsidy removal has increased its earnings.
“If you come out to tell us that subsidy is gone, that you are making more money and then you are giving more money to states, what is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?” he asked.
The labour leader also pointed to the recent rise in international crude oil prices, arguing that it should be factored into any assessment of the country’s borrowing needs.
He noted that the 2026 budget was prepared using an oil price benchmark of $70 per barrel. However, crude oil prices have risen above $100 per barrel following tensions involving the United States and Iran.
Ajaero questioned whether Nigeria should still be taking loans if higher oil prices translate into increased revenue.
“If the 2026 budget was prepared with crude oil price benchmarked at $70 per barrel and now sells above $100 per barrel due to the US-Iran crisis, should this country still be taking loans?” he asked.
He further urged the Federal Government to explain how the additional borrowing would affect the country’s debt obligations, particularly in light of increased revenue and higher allocations to oil-producing states.
Ajaero, however, clarified that the NLC does not have the constitutional power to approve or reject government borrowing. He acknowledged that such decisions rest with the appropriate institutions but insisted that Nigerians and relevant authorities must demand transparency and accountability.
The disagreement places the proposed ₦10.8 trillion borrowing request at the centre of an ongoing debate over the Federal Government’s economic priorities, debt management strategy and infrastructure financing plans.
While the Tinubu administration maintains that long-term borrowing is necessary to address Nigeria’s infrastructure deficit and stimulate economic activity, organised labour wants the government to explain why increased revenue has not reduced dependence on external financing.
President Bola Tinubu, on his part, said the government would ultimately be judged by what it delivers with the borrowed funds.
“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives,” he said.
