Nigeria’s Debt Nears ₦180 Trillion as President Tinubu Seeks Fresh ₦34 Trillion in Loans
Nigeria’s total debt could soon pass ₦180 trillion, as President Bola Tinubu has asked the National Assembly to approve new loans worth ₦34.15 trillion.
This includes a large external loan plan of $21.5 billion (about ₦33.39 trillion using the exchange rate of ₦1,590 per dollar) and a ₦757.9 billion domestic bond to pay off overdue pension debts.
In letters to the Senate and House of Representatives, Tinubu said the new borrowing plan for 2025–2026 targets key sectors like infrastructure, agriculture, health, education, water, and security. He noted the funds are needed especially after the fuel subsidy was removed, which increased financial strain.
He explained that the money would support major national projects, particularly in transportation, healthcare, and state-wide development, aiming to reduce poverty, create jobs, and improve food security.
For the pension debt, Tinubu said past revenue challenges have made it hard to meet legal pension payments, causing hardship for retirees. The new domestic bond would help clear the pension backlog and boost trust in the pension system.
He assured the lawmakers that the money would be used transparently and for public benefit. The Senate and House referred the requests to their respective committees for further review.
As of 2024, Nigeria’s debt had already grown by nearly 49%, from ₦97.34 trillion in 2023 to ₦144.66 trillion in 2024. The federal government alone is responsible for ₦137.28 trillion of that.
If the new loans are approved — and when combined with ₦10.85 trillion borrowed from January to April 2025 — the national debt would climb to over ₦180 trillion.
Between January and February 2025, the federal government spent ₦1.4 trillion on debt payments, a 25% increase compared to the same period in 2024. Revenue, meanwhile, only rose by 13% to ₦1.07 trillion. This pushed Nigeria’s debt service-to-revenue ratio to 131% — meaning the government spent more on debt than it earned in revenue.
Tunde Abidoye of FBNQuest noted the new $21.5 billion loan is nearly half of Nigeria’s total external debt and warned of the risks from exchange rate fluctuations and rising debt service costs.
Olatunde Amolegbe, former president of the Chartered Institute of Stockbrokers, said borrowing isn’t bad if Nigeria can repay. He stressed that funds must be well-used and tied to measurable benefits.
Clifford Egbomeade, an economist, said the pension bond could quickly help retirees, while external loans — if concessional and used wisely — could boost long-term development. But he cautioned that poor planning or misuse could deepen Nigeria’s financial troubles.
The new loan request could help fund urgent needs and stimulate the economy, but with Nigeria’s debt already at record highs, careful spending, transparency, and smart reforms are critical.