Senator Orji Uzo Kalu, representing Abia North Senatorial District, has warned that Nigeria’s economy risks collapse without continued external borrowing. Speaking on Monday, the former Senate Chief Whip defended the National Assembly’s approval of executive loan requests, amid growing concerns over the country’s rising debt profile.
Kalu dismissed criticisms that the legislature acts as a “rubber stamp” for loan approvals, insisting that due diligence is maintained through rigorous oversight. “Let me tell you, if this economy does not borrow, it will collapse. That is the truth,” he stated. “The Committee on Foreign Debt and Local Debt scrutinizes these requests. These jobs are mainly done at the committee level. For me, the National Assembly has done its job.”
In April 2025, Nigeria fully repaid a $3.4 billion IMF loan secured under the Rapid Financing Instrument during the COVID-19 crisis. However, the country still faces annual Special Drawing Rights (SDR) charges of approximately $30 million related to the facility. Despite this repayment, Nigeria plans to borrow an additional $26 billion between 2025 and 2026 to address budget deficits and stimulate economic growth—a move that has drawn public criticism.
Addressing accusations of inadequate oversight, Kalu, a former Abia State governor, emphasized that legislative processes are thoroughly followed. “Any law or decision passed in the National Assembly has gone through the proper channels. Once it takes its course, I’m satisfied. That’s the definition of lawmaking,” he said.
Kalu also rejected claims that lawmakers are failing in their oversight duties, pointing to the recent passage of the tax bill as evidence 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,” he said.
