Nigeria’s public debt may soar past ₦180 trillion, as President Bola Tinubu formally seeks legislative approval for new external loans and domestic bonds totaling over ₦34 trillion.
In letters to both chambers of the National Assembly on Monday, the President requested approval for:
- $21.5 billion,
- €2.2 billion,
- 15 billion Japanese Yen, and
- a €65 million grant,
under the 2025–2026 borrowing plan.
Tinubu emphasized that the borrowing will fund critical infrastructure across rail, healthcare, water, agriculture, education, and security in all 36 states and the FCT. He also seeks to issue ₦757.9 billion in domestic bonds to settle pension arrears under the Contributory Pension Scheme.
“Due to revenue challenges, we have failed to meet pension obligations, causing hardship for retirees,” Tinubu stated.
The President argued that the new loans are essential following the removal of fuel subsidy and ongoing efforts to close the infrastructure deficit.
Rising Debt and Fiscal Pressure
According to the Debt Management Office, Nigeria’s total debt rose from ₦97.34 trillion in 2023 to ₦144.66 trillion by December 2024 — a 48.6% increase. The new loan requests and domestic borrowings this year (₦10.85 trillion) suggest the debt could exceed ₦180 trillion.
Economic analysts raised concerns about the country’s ability to service debt, with the debt service-to-revenue ratio worsening to 131% in Jan–Feb 2025, up from 118% in the same period last year.
Experts Urge Caution
While some economists, like Clifford Egbomeade, believe the loans could boost development if properly managed, others warn about exchange rate risks, ballooning debt service costs, and fiscal instability.
“Borrowing isn’t the issue — the ability to repay and use the funds transparently is what matters,” said Olatunde Amolegbe, former president of the Chartered Institute of Stockbrokers.
The Senate and House have referred the President’s request to relevant committees for further review.
