More Borrowing: Tinubu Requests $21.5M, ¥15B, €65M in Fresh Foreign Loans to Boost Economy and Tackle Poverty

 

President Bola Ahmed Tinubu has formally approached the National Assembly with a fresh appeal for the approval of significant external borrowings. The latest funding request forms part of a broader 2025–2026 borrowing framework, which includes a mix of loans and grants aimed at driving economic revitalization across Nigeria.

According to a letter read aloud by Senate President Godswill Akpabio during Tuesday’s plenary session, Tinubu is asking lawmakers to endorse external loans totaling $21.5 million and ¥15 billion. Complementing the loan package is a proposed grant of €65 million, which is also slated to be embedded within the national external borrowing plan.

Rather than pursuing these loans for general fiscal purposes, the president underscored their targeted application. He noted that the proposed funds are earmarked for programs and initiatives designed to address critical socio-economic challenges. Specifically, the loans and grant are expected to finance interventions aimed at expanding employment opportunities, fostering skill development, enhancing entrepreneurship, alleviating poverty, and improving food security.

The president stressed the inclusive nature of the planned projects, assuring lawmakers that the benefits will be distributed nationwide. Every one of Nigeria’s 36 states, including the Federal Capital Territory (FCT), is expected to benefit from the development initiatives funded through this borrowing arrangement.

Tinubu’s administration has continued to double down on economic growth as a central theme, especially amid rising concerns over unemployment, inflation, and food insecurity. The government argues that these challenges require substantial financial injection into productive sectors—something foreign loans can facilitate more swiftly than domestic revenue sources.

However, the timing of the request has sparked renewed scrutiny. Nigeria’s total public debt had already ballooned to N144.7 trillion (approximately $94.2 billion) as of December 2024, according to the most recent data published by the Debt Management Office (DMO). This figure highlights a growing concern among economists and civil society groups regarding the nation’s borrowing trajectory.

A closer examination of the debt profile reveals that roughly 51.4 percent—about N74.4 trillion—is owed domestically. The remaining 48.6 percent, or N70.3 trillion, comprises external debt, the very category Tinubu is seeking to expand. Critics argue that the increasing reliance on external financing could expose the country to foreign exchange volatility and unfavorable repayment conditions in the medium to long term.

Despite these concerns, the administration maintains that the benefits of the proposed borrowing outweigh the potential risks. By channeling funds into high-impact, growth-centric programs, Tinubu’s team believes it can create a more stable and self-sufficient economy in the long run.

Legislative reactions to the request are expected to be mixed. Some lawmakers are likely to support the proposal, citing the urgent need for economic stimulus and job creation. Others may call for more transparency and accountability, demanding detailed implementation plans and strict oversight mechanisms to ensure the funds are not mismanaged.

This latest development adds another layer to Nigeria’s fiscal narrative—one that is increasingly defined by the struggle to balance developmental aspirations with responsible debt management. The coming weeks will be critical, as the National Assembly deliberates on whether to give the green light to the proposed external borrowing, which could significantly shape the economic landscape of Nigeria over the next two years.