Speaker Femi Gbajabiamila told reporters on Thursday that President Bola Tinubu inherited an economy “living on borrowed time,” citing rising debt and a shrinking GDP.
The comment came as Nigeria’s foreign exchange reserves fell to a five‑year low of $14.5 billion, while inflation surged to 31.7% in June.
Why does this matter?
When a nation’s fiscal house is built on short‑term loans, the ripple effects hit every citizen – from higher food prices at the market to tighter credit for small businesses. A faltering Tinubu economy could stall the ambitious infrastructure projects that promise jobs and power the country’s export drive.
What does Gbajabiamila actually mean?
He did not provide a precise figure for the debt burden, but the IMF’s latest country report notes Nigeria’s public debt hit $96 billion in May, a level many analysts consider unsustainable.
Gbajabiamila also warned that the government’s reliance on oil‑price volatility makes fiscal planning “a game of chance.”
“We are borrowing from future generations,” he said, echoing concerns raised by economists at the Central Bank of Nigeria.
Concrete numbers that illustrate the pressure
- GDP growth slowed to 2.1% YoY in Q2 2026, down from 3.9% a year earlier.
- External debt service obligations now consume 45% of total revenue.
- Unemployment sits at 33%, with youth joblessness above 45%.
These statistics paint a stark picture of a Tinubu economy that is straining under its own weight.
Who is affected?
Middle‑class families feel the pinch as real wages fall 12% annually, while exporters struggle with a weakened naira that has lost 22% against the dollar since January.
Investors watch closely; a downgrade by Moody’s could raise borrowing costs by another 150 basis points, further squeezing the budget.
For a full view of how this ties into Nigeria’s broader financial landscape, see our economy and markets coverage.
What happens next?
Gbajabiamila urged the president to diversify revenue streams, tighten spending, and accelerate tax reforms. The next parliamentary session could see a contested budget that tests Tinubu’s political capital.
Will the administration pivot quickly enough to avoid a fiscal crisis, or will debt‑driven growth continue to erode public confidence? The answer will shape Nigeria’s outlook for years to come.
Meta description: Speaker Gbajabiamila warns Nigeria’s Tinubu economy is living on borrowed time as debt spikes and growth stalls.