Nigeria’s public debt is projected to exceed N180 trillion following President Bola Tinubu’s request to the National Assembly for approval of new external and domestic loans totaling N34.15 trillion.
In letters addressed to both chambers of the National Assembly, President Tinubu requested approval for an external borrowing plan amounting to over $21.5 billion, equivalent to N33.39 trillion at the official exchange rate of N1,590 per dollar.
The president is also seeking approval for the issuance of domestic bonds worth N757.9 billion to clear outstanding pension liabilities.
The letters were read during plenary sessions on Monday by Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas.
Tinubu emphasized that the proposed 2025–2026 borrowing plan is strategically designed to address key sectors of the Nigerian economy, including infrastructure, agriculture, health, education, water supply, economic growth, security, employment generation, and financial reforms.
He stated, “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, among others.”
According to the president, the borrowing package includes $21,543,647,912; €2,193,856,324.54; and ¥15 billion (Japanese Yen), along with a €65 million grant.
Tinubu defended the borrowing proposal by referencing the economic impact of the fuel subsidy removal and the country’s limited fiscal space. He said the loans are essential to bridge Nigeria’s infrastructure financing gap and stimulate economic development amid declining domestic demand.
“In light of the significant infrastructure deficit in the country and paucity of financial resources needed to address this gap, amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall,” he said.
If approved, the loans would significantly increase Nigeria’s total debt stock, which stood at N121.67 trillion as of December 2023, according to the Debt Management Office (DMO).
