President Bola Tinubu has asked the National Assembly to approve fresh loans worth N34.15 trillion, a move that could push Nigeria’s total public debt beyond N180 trillion.
In two letters to the Senate and House of Representatives, President Tinubu requested approval for an external borrowing plan of $21.5 billion (about N33.39 trillion at an exchange rate of ₦1,590/$) and a domestic bond issuance of N757.9 billion. The domestic bond is intended to clear outstanding pension liabilities under the Contributory Pension Scheme (CPS).
The President explained that the 2025 – 2026 borrowing plan will target key areas such as infrastructure, agriculture, education, healthcare, water supply, security and job creation. He emphasized that the loans are necessary to bridge Nigeria’s infrastructure gap and mitigate the economic effects of fuel subsidy removal.
The proposed external facility includes over $21.5 billion, €2.19 billion, 15 billion Japanese Yen and a €65 million grant. The loans, Tinubu said, will support critical projects, especially in railway development, health services and state wide infrastructure initiatives.
In a separate request, Tinubu also cited revenue shortfalls as the reason for unpaid pension contributions. He stressed that issuing bonds to settle arrears already approved by the Federal Executive Council will boost retirees’ welfare and restore trust in the pension system.
The Senate has referred the loan requests to its committee on local debts, while the House of Representatives directed them to committees on national planning and pensions.
Nigeria’s public debt rose by 48.6% to N144.66 trillion in 2024 from N97.34 trillion in 2023. The Federal Government is responsible for 95% of this debt. With an additional N10.85 trillion borrowed locally between January and April 2025, the country’s total debt could exceed N180 trillion.
Debt servicing remains a major concern. In the first two months of 2025, the Federal Government spent N1.4 trillion on debt repayment, up 25% from N1.1 trillion in the same period last year. Revenue rose to N1.07 trillion, resulting in a debt service-to-revenue ratio of 131% a sign that Nigeria is spending more on debt than it earns.
Economic analyst Clifford Egbomeade noted that while the borrowing could relieve pensioners and boost investment if properly managed, Nigeria’s rising debt profile calls for cautious planning and strict transparency to avoid worsening the country’s financial situation.