President Bola Tinubu has formally requested the National Assembly’s approval to secure external loans totaling $21.5 million and ¥15 billion, in addition to a grant of €65 million.
This request is part of the federal government’s proposed 2025–2026 external borrowing plan.
The President’s request was conveyed in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary session.
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In the letter, Mr. Tinubu explained that the funds are earmarked for initiatives aimed at generating employment, promoting skill acquisition, enhancing entrepreneurship, reducing poverty, and boosting food security.
He emphasized that these proposed projects and programs are designed to have a nationwide impact, benefiting all 36 states of the federation and the Federal Capital Territory (FCT).
Following the reading of the letter, Mr. Akpabio referred the request to the Senate Committee on Local and Foreign Debt.1 He instructed the committee to review the proposal and submit its findings to the Senate within two weeks.
Nigeria’s public debt has been on an upward trend in recent years, leading to growing concerns about the country’s fiscal sustainability.
According to Nigeria’s Debt Management Office (DMO), as of December 31, 2024, Nigeria’s total public debt stood at N144.7 trillion (approximately $94.2 billion).
Of this amount, domestic debt accounted for 51.4% (N74.4 trillion), while external debt made up 48.6% (N70.3 trillion).
This escalating debt has resulted in significantly increased debt servicing costs.
In 2023, Nigeria spent N7.8 trillion on debt servicing, marking a 121% increase from N3.52 trillion the previous year.
The amount allocated for debt servicing further rose to N13.12 trillion in 2024, a 68% increase from the 2023 figure.
These high debt servicing costs mean fewer funds are available for crucial sectors like infrastructure and social services, which could potentially impede economic growth and development.
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