President Bola Ahmed Tinubu has asked the National Assembly to approve new foreign loans amounting to $24.14 billion. If the lawmakers give the go-ahead, Nigeria’s total public debt may jump to over ₦182.91 trillion by 2026. This move has sparked serious concern among economists, civil society groups, and opposition politicians who fear the country may be borrowing beyond its means.
At the end of 2024, Nigeria’s public debt stood at ₦144.67 trillion. The new loan request includes borrowings in different currencies—$21.54 billion in US dollars, €2.19 billion in euros, and ¥15 billion in Chinese yuan. When converted using the official rate of ₦1,583.74 per dollar, the total value of the new debt comes to about ₦38.24 trillion.
The Presidency said this fresh borrowing is part of the 2025–2026 borrowing plan and is targeted at funding major projects in infrastructure, agriculture, education, water, security, health, and public finance. President Tinubu assured that all the projects tied to these loans have been properly evaluated and are meant to boost economic growth, create jobs, and improve living standards.
Apart from the foreign loans, President Tinubu is also asking for permission to raise $2 billion from a bond denominated in foreign currency but to be issued in the local financial market. The Presidency said this bond is part of an executive order signed in 2023 and aims to deepen the domestic financial system, attract foreign currency into the country, and help shore up the country’s foreign exchange reserves.
In another request, the president wants the National Assembly to approve the issuance of ₦757.98 billion worth of bonds to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS) as of December 2023. The government said this request is backed by the Pension Reform Act of 2014. According to the Presidency, the money will go a long way to restore confidence in the pension system and bring relief to retirees who have been waiting for their benefits.
If all these proposals are approved, Nigeria’s total public debt may rise far above ₦182.91 trillion by 2026. This figure excludes possible additional domestic borrowings that may be required to cover budget deficits, as well as repayments of older loans that fall due.
The country’s debt burden has been rising sharply. From 2023 to 2024, total public debt increased by 48.58 percent, moving from ₦97.34 trillion to ₦144.67 trillion. The jump was mainly due to more borrowings and the continued weakening of the naira. External debt rose from ₦38.22 trillion to ₦70.29 trillion, while domestic debt went up from ₦59.12 trillion to ₦74.38 trillion.
If the new $24.14 billion loan is added, Nigeria’s external debt may increase from $45.78 billion to nearly $70 billion. The naira equivalent of this will exceed ₦108 trillion. The Federal Government currently accounts for ₦133.33 trillion of the total debt, while debts owed by state governments and the Federal Capital Territory have dropped to ₦3.97 trillion, indicating a more cautious approach by state authorities.
Economic experts have expressed different views. Johnson Chukwu, Group CEO of Cowry Assets Management Limited, said the real issue is not the size of the loan but how the funds are spent. He said if the money is not used for projects that generate value, the loans become a heavy burden. Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise warned that debt servicing is now taking more funds than capital spending, making it difficult for government to function properly. He called on the government to improve revenue generation and cut unnecessary expenses.
Professor Segun Ajibola of Babcock University welcomed the plan to clear pension arrears, saying it is long overdue and that pensioners should not suffer after serving the country. But others like former Zenith Bank Chief Economist, Marcel Okeke, said past loans have not led to visible improvements in infrastructure or services.
The Peoples Democratic Party (PDP) and former Vice President Atiku Abubakar have criticized the loan request. PDP spokesman, Debo Ologunagba, said Nigerians have not seen the benefit of previous borrowings and accused the Tinubu government of prioritizing personal interest over public service. Atiku’s media aide, Paul Ibe, asked the government to explain how past loans were used before asking for more, warning that the new funds may not benefit ordinary Nigerians.
Auwal Musa Rafsanjani of the Civil Society Legislative Advocacy Centre (CISLAC) raised concerns about transparency and accountability. He said there has been no proper account of previous loans, including the $3.4 billion IMF loan received during the COVID-19 crisis. Emmanuel Onwubiko of the Human Rights Writers Association of Nigeria called the loan plan reckless and said the National Assembly is not doing its job of holding the government accountable. BudgIT’s analyst Vahyala Kwaga also warned that Nigeria may breach its 40 percent debt-to-GDP limit if the loans go through and urged the government to publish updated budget implementation reports.
Despite all the warnings and criticisms, the Federal Government insists the new borrowing is necessary to fund key sectors and keep the economy running.
