Nigeria’s debt to hit N180trn as Tinubu seeks N34trn new loans
Nigeria’s debt is expected to hit N180 trillion following President Bola Tinubu’s request to the National Assembly to approve N34.15 trillion in extra domestic and foreign loans.
A fresh external loan plan worth over $21.5 billion, or N33.39 trillion at the official exchange rate of N1,590 to the dollar, is being proposed by President Tinubu, according to reports.
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The President is also requesting clearance to issue N757.9 billion in domestic bonds to pay off outstanding pension obligations.
During yesterday’s plenary, Senate President Godswill Akpabio and House Speaker Tajudeen Abbas read separate letters to the Senate and House of Representatives, where President Tinubu emphasised the strategic importance of the 2025–2026 borrowing plan, pointing out that it covered important economic sectors.
Tinubu said: “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.”
He clarified that, in addition to a grant of 65 million EUR, the entire facility requested under the external borrowing plan consists of USD 21,543,647,912; EUR 2,193,856,324.54; and 15 billion Japanese Yen.
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Tinubu, who noted that the proposed loan is crucial, in light of removal of fuel subsidy and its economic implications, stated: “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 assured the menbers of the house that the proposed money would go towards vital infrastructure projects, particularly those pertaining to healthcare, railroads, and national development initiatives in all 36 states as well as the Federal Capital Territory (FCT).
“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as improve the livelihoods of Nigerians,” he emphasized.
