President Bola Ahmed Tinubu has requested National Assembly approval for fresh external loans amounting to \$21.5 billion, €2.19 billion, 15 billion Japanese yen, and a €65 million grant, equivalent to approximately ₦17.355 trillion. If approved, Nigeria’s total public debt could climb to ₦162.025 trillion.
The president’s borrowing plan was outlined in formal letters read in both chambers of the National Assembly by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas.
The new loans are part of the 2025–2026 external borrowing framework and are aimed at funding critical projects in infrastructure, agriculture, healthcare, education, water supply, security, and employment generation.
“These projects were selected based on technical and economic evaluations and are geared toward addressing the country’s infrastructure deficit, reducing poverty, creating jobs, and boosting food security,” Tinubu stated.
With an exchange rate of ₦650 to \$1 as of May 27, 2025, the loans translate to ₦13.65 trillion (\$21 billion), ₦4 trillion (€2.19 billion), ₦174 billion (15 billion yen), and ₦116 billion (€65 million). The debt increase comes on the heels of already ballooning obligations, with ₦56.6 trillion added to Nigeria’s debt stock since Tinubu took office.
Data from the Debt Management Office (DMO) indicates Nigeria’s public debt rose from ₦87.379 trillion in June 2023 (after Buhari’s exit) to ₦144.67 trillion by December 2024—a 48.58% increase.
Tinubu noted that the loans are urgently needed to bridge the financial gap created by subsidy removal and dwindling revenues.
“These initiatives aim to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, all of which will improve the livelihoods of the average Nigerian. The majority of these projects and programmes will be implemented across all 36 states and the Federal Capital Territory.”
The president further sought approval to raise an additional \$2 billion through foreign currency-denominated instruments in the local debt market.
“This request is pursuant to the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds,” Tinubu wrote.
The proceeds, he said, would be channeled into growth-driving sectors and would help diversify funding sources, deepen local capital markets, and offer investors stable returns on dollar assets.
He acknowledged the borrowings would increase both the public debt burden and debt servicing costs.
In a third request, Tinubu asked lawmakers to approve a bond issuance of ₦757.98 billion to clear outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.
“This bond issuance will enable the federal government to meet its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants,” he stated.
Critics, however, argue that the loans may worsen fiscal instability.
Umar Yakubu, Executive Director at the Centre for Fiscal Transparency and Public Integrity, said, “We’ve reached a level of fiscal irresponsibility where we finance government excesses with borrowing because overtime, statistics has shown that these borrowings have little or no impact on the common man.”
Development expert Joseph Momoh expressed similar concerns, saying, “If you look at the indices, nothing serious had changed. Look at cost of living, insecurity and poverty, it is on the rise and they keep borrowing without results.”
Professor Uche Uwaleke of Nasarawa State University said, “Loan is in order if tied to specific projects with high positive impact on the economy. In order to ensure this, the loan proceeds should be ring-fenced and its utilization subjected to strict monitoring by not only government agencies but also by civil society groups and the media.”
The DMO’s most recent report highlights Nigeria’s rising debt trend. Between December 2023 and December 2024, public debt increased by ₦47.32 trillion—nearly 49%—reaching ₦144.67 trillion. External debt accounted for 48.59%, while domestic obligations made up 51.41%.
The sharp rise in foreign debt—from ₦38.22 trillion (\$42.5 billion) in December 2023 to ₦70.29 trillion (\$45.78 billion) in December 2024—was driven by new borrowings and the continued depreciation of the naira.
Further analysis revealed that ₦14.3 trillion of the ₦54.2 trillion 2025 national budget is dedicated to debt servicing.
The budget further carries a fiscal deficit of ₦13.08 trillion, underscoring Nigeria’s widening financial gap and the growing pressure to borrow.
