Reversing the Cost of Constant Borrowing; A Corporate Appeal to Nigeria’s Leaders, Businesses and Citizens

Nigeria stands at a crossroads. The country’s recent surge in borrowing, external and domestic has helped close immediate fiscal gaps, fund infrastructure, and stabilize certain sectors. But unchecked, it risks shifting the burden of today’s needs onto the shoulders of future generations. As a corporate citizen committed to good governance and lasting prosperity, DeKing Group issues this appeal: let us work together – government, business, civil society, families to change the course. Invest in our people, empower small businesses, and restore a patriotic culture that puts the destinies of our children first.

The problem in plain terms

Nigeria’s public debt has risen sharply in recent years, with official records showing a big jump in total public debt (both external and domestic) through 2024–2025. For example, public debt stock climbed to levels reported by the Debt Management Office and national statistics offices, with Q1 2024 figures showing a marked increase compared with the prior year. (Debt Management Office Nigeria)

Why does this matter? Repeated reliance on loans can produce several harmful effects simultaneously:

• Crowding out private investment. When the government absorbs savings by issuing domestic debt, interest rates can rise and credit becomes scarcer for businesses — especially SMEs that rely on affordable loans to grow. Academic and policy research in Nigeria confirm this crowding-out risk and link heavy government borrowing to tighter financing for housing and private projects. (SCIRP)

• Debt servicing pressure. As loan stock grows, a larger share of public revenue must go to interest payments rather than schools, healthcare or youth programs — squeezing the very investments that foster long-term growth. The IMF’s consultations and fiscal reviews have documented how increased spending on interest and short-term financing changes the composition of public spending. (IMF)

• Macroeconomic instability. Heavy external borrowing and fiscal gaps have been associated with exchange-rate pressures and inflation spikes in Nigeria; international institutions and central bank analyses identify pass-throughs from debt dynamics to prices and the currency. (dc.cbn.gov.ng)

These are not abstract academic worries, they translate into higher living costs, fewer job opportunities for our youths, and a deferred bill for our children.

The alternative and why it matters: people, work and locally grown businesses

Nigeria’s greatest asset is its people. Small and medium enterprises (SMEs) are already a backbone of the economy: multiple national surveys and reports estimate that MSMEs/SMEs account for a very large share of employment and a substantial portion of GDP — supporting livelihoods across cities and towns. Empowering them is one of the highest-return investments a nation can make. (nigerianstat.gov.ng)

Prioritizing local labour and SMEs does three powerful things:

1. Creates resilient jobs at scale. SMEs employ the majority of Nigerian workers and are effective at turning local demand into local jobs — this helps reduce unemployment and social stress. (AFSIC 2025 – Investing in Africa)

2. Keeps more value inside communities. When we buy local and build local supply chains, more income circulates domestically: that supports schools, health clinics and small suppliers across the country.

3. Reduces future fiscal pressures. Productive private sector growth expands the tax base over time, generating sustainable public revenues without over-reliance on debt.

What good corporate governance and patriotic stewardship look like

DeKing Group believes corporate governance and patriotism are complementary. Governance demands responsibility to shareholders and stakeholders; patriotism demands responsibility to the nation’s future. Both require that corporations and governments adopt longer time horizons and shared accountability.

Key principles:

• Transparency & prioritization: Public finances should be transparent; borrowed funds must be prioritized for projects with measurable returns (e.g., power, transport links that reduce costs for businesses, and human capital investments). The private sector should demand clarity on project selection and performance. (IMF)

• Inclusive policy-making: Design fiscal and industrial policies with SMEs and labour in mind — not as an afterthought. This means targeted credit windows, capacity building, and reducing regulatory bottlenecks. (verivafrica.com)

• Long-term human investment: Prioritize vocational training, technical education, and civic education that fosters responsibility, civic pride and a culture of thinking “Nigeria first” in procurement, hiring and investment. Studies on civic and civic education in Nigeria show how reorientation and education can strengthen national cohesion and patriotic engagement. (ResearchGate)

Concrete policy and civic actions; what each group can do now

Government

• Shift financing away from short-term consumption borrowing toward concessional, project-linked financing and domestic reforms that stabilize revenues. Where borrowing is unavoidable, make it conditional on transparent performance metrics and publish independent project audits. (IMF)

• Scale SME access to finance through credit guarantees, tiered interest support, and faster digital payment and credit assessment systems to reduce costs and risks for lenders. (nigerianstat.gov.ng)

• Invest in vocational clusters and local infrastructure that reduce the cost of doing business (reliable power, roads, logistics hubs).

Private sector & large corporations

• Source locally where feasible. Adopt procurement policies that give SMEs a real chance to supply goods and services; offer mentoring and supplier finance to help them meet standards.

• Invest in apprenticeships and in-house training. Partner with vocational schools to shape curricula and give young Nigerians pathways into meaningful careers. (verivafrica.com)

Citizens, families, communities

• Cultivate a patriotic ethic of long-term thinking. Make choices that prioritize community resilience from supporting local tradespeople to demanding accountability from elected leaders. Civic education and local engagement shape the next generation’s sense of responsibility. (ResearchGate)

• Vote and hold leaders accountable. Fiscal responsibility should be a voting issue: citizens should assess candidates on plans for sustainable revenue, spending priorities, and SME support.
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Why this matters for our children

Every naira borrowed today is a claim on future public resources. If we continue to fund consumption and short-dated liabilities rather than productive capacity and our human capital, our children inherit higher taxes, fewer public services and weakened opportunities. But if we pivot,  prioritize SMEs, local labour, skills and civic education, we build a self-sustaining economy that creates jobs, expands the tax base, and improves living standards without mortgaging the future.

As part of this national effort, DeKing Group commits to:

• Prioritizing local procurement and supplier development where commercially viable.

• Partnering with technical training centres to create apprenticeships and job pathways.

• Advocating for transparent public finance and supporting civic programmes that promote responsible citizenship and fiscal literacy.

We call on other corporations to join us in public-private partnerships to expand access to credit, mentor SMEs, and co-fund vocational programmes.

Appeal to unity and stewardship

Nigeria’s story is still being written. We are many; government, business, families, faith groups, and communities and we must act together. Doing so requires courage from political leaders to prioritize long-term gains over short-term fixes, discipline from businesses to invest in local capacity, and a renewed civic culture in which we place the destiny of our children above immediate convenience.

Let us choose to build wealth that lasts not debt that borrows from our children’s future. Let patriotism mean more than words on a flag: let it be the daily practice of supporting local enterprise, training our young people, and holding public finances to the light. DeKing Group stands ready to partner and lead by example. Will you?

Selected sources and further reading

• Nigeria Debt Management Office — Total Public Debt reports (debt stock by period). (Debt Management Office Nigeria)

• National Bureau of Statistics — MSME and public debt data, Q1 2024 debt figures. (nigerianstat.gov.ng)

• IMF — Article IV Consultation and fiscal analysis (2025). (IMF)

• Reuters reporting on Nigeria’s 2025 borrowing plans and sukuk issuance. (Reuters)

Academic and policy studies on crowding-out and debt impacts in Nigeria. (SCIRP)