Nigeria’s Debt Soars Past ₦180 Trillion as Tinubu Seeks Additional ₦34 Trillion Loan Package

 

Nigeria’s total public debt has surged beyond the N180 trillion mark following a fresh borrowing request by President Bola Ahmed Tinubu. The latest development has drawn attention nationwide, as the President seeks legislative approval for new loans aimed at revitalizing critical sectors of the economy.

During Tuesday’s plenary session, Senate President Godswill Akpabio and House Speaker Tajudeen Abbas read letters from the President requesting the National Assembly’s endorsement of a new borrowing initiative valued at N34.15 trillion. This includes both external and domestic loans, intended to address the country’s expanding financial obligations and strategic development goals.

As part of the plan, Tinubu is pursuing an external borrowing facility totaling over $21.5 billion, which, at the prevailing official exchange rate of N1,590 to the dollar, converts to N33.39 trillion. The President also proposed the issuance of domestic bonds amounting to N757.9 billion, specifically earmarked to settle outstanding pension liabilities that have continued to mount pressure on public sector retirees and the national budget.

According to details shared in the letters, the proposed 2025–2026 borrowing strategy will touch every major facet of national development. Emphasis is being placed on infrastructure renewal, agricultural advancement, healthcare delivery, educational reform, improved access to potable water, national security, job creation, and monetary and financial sector realignment.

President Tinubu highlighted the urgency of the loan in light of recent economic reforms, including the highly controversial removal of the petrol subsidy. The fiscal shockwave triggered by this move has been felt across households and businesses, exacerbating the need for strategic financial intervention by the government.

“The 2025–2026 borrowing plan covers all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms,” Tinubu stated. The objective, he stressed, is not merely to borrow, but to invest wisely in sectors that will catalyze long-term national productivity and stability.

The foreign loan package comprises multiple components: USD 21,543,647,912, EUR 2,193,856,324.54, and 15 billion Japanese Yen. There is also a grant element of 65 million Euros included in the funding mix. This diverse combination signals an effort to balance the country’s foreign currency exposure while leveraging international partnerships for development finance.

The proposed loans, once approved, would represent one of the most ambitious borrowing drives in Nigeria’s recent history. Government officials have consistently defended such loans as a necessary evil, arguing that the country’s large infrastructure gap and dwindling domestic revenues leave limited alternatives.

President Tinubu’s administration maintains that without these injections of capital, the nation’s economic and social development targets will remain elusive. Supporters within the government also point to the structured nature of the borrowing, which ties funds directly to projects with measurable outputs.

Critics, however, warn of the growing debt burden and its implications for future generations. With debt servicing already consuming a substantial portion of Nigeria’s annual budget, analysts urge caution, transparency, and strict accountability in the utilization of these funds.

As the National Assembly reviews the request, the spotlight will remain on how the proposed loans align with Nigeria’s broader economic recovery plan and whether the anticipated benefits justify the expanding debt profile.

This request, if approved, could redefine the trajectory of the Nigerian economy—either setting it on a path to revitalization or deepening its vulnerability to external shocks and financial instability.