Debts: If Nigeria Does Not Borrow, The Economy Will Collapse – Orji Kalu

(AFRICAN EXAMINER) – Amid concerns over Nigeria’s rising debt profile, Senator Orji Kalu has defended the government’s borrowings, warning that without external financing, the country’s economy could face collapse.

“Let me tell you, if this economy does not borrow, it will collapse. That is the truth. That is where we are,” the former Abia State Governor said.

When pressed on whether legislators adequately scrutinise requests for loans, Kalu insisted that the oversight process remains intact.

“Of course. The Committee on Foreign Debt and Local Debt scrutinises them. I’m not a member of that committee. These jobs are mainly done at the committee level. For me, the National Assembly has done its job,” he explained.

In April 2025, Nigeria fully repaid the $3.4 billion IMF loan it obtained under the Rapid Financing Instrument during the COVID-19 crisis. However, the country will continue to pay around $30 million annually in Special Drawing Rights (SDR) charges related to the facility.

Despite this, Nigeria plans to borrow an additional $26 billion between 2025 and 2026 to address deficits and spur economic growth, a move many Nigerians have faulted, accusing the National Assembly of being a “rubber stamp”.

But the former Senate Chief Whip has dismissed the criticism, insisting that the due legislative processes are always followed.

“Any law or anything you see passed in the National Assembly has gone through the level it’s supposed to,” he said. “Once it takes its course, I’m satisfied. That’s the definition of lawmaking.”

Kalu rebuffed suggestions that lawmakers were failing to perform their oversight role and cited the recent passage of the tax bill as proof of the Senate’s diligence.

“We are very thorough. People just want to see us fighting with the executive. We are adults. We cannot fight. For the interest of Nigeria, we have mechanisms to safeguard that.

“The day we passed the tax bill, I went to the Senate President’s house to congratulate him. It was a thorough job. All the evenings we were there—seven o’clock, six o’clock—we took it one by one. That’s not what a rubber stamp does,” he stated.

Senator Kalu also addressed the economic hardship many Nigerians face since the removal of fuel subsidy in 2023 and the floating of the naira.

While acknowledging President Bola Tinubu’s reform efforts, he admitted that the positive impact had yet to trickle down to the grassroots.

“The macro side is coming, but the other downsides are not coming very well. Nigerians in the lower area are still suffering. They have not started having the benefit of the changes President Tinubu is making,” Kalu said.

He attributed the slow pace of economic recovery to persistent insecurity across the country, which has hindered farming and other productive activities.

“It’s going to take another one to two years for the changes to come. Some people working with Tinubu should be relieved of their duties,” he added.

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