Nigeria’s Public Debt Set to Exceed N180 Trillion as Tinubu Seeks Fresh Loans Worth N34.15 Trillion
Nigeria’s national debt is on course to surpass N180 trillion, following a new loan request by President Bola Ahmed Tinubu, who has officially approached the National Assembly to secure approval for external and domestic borrowings amounting to N34.15 trillion. The move has sparked intense debate across the country, as citizens and economists question the sustainability of Nigeria’s growing debt profile amidst ongoing economic hardship.
Tinubu’s Borrowing Request: What It Entails
In formal letters sent to both chambers of the National Assembly — the Senate and the House of Representatives — President Tinubu outlined a comprehensive plan to borrow over $21.5 billion from foreign lenders. At the current official exchange rate of ₦1,590 per US dollar, this foreign borrowing request translates to ₦33.39 trillion. Additionally, Tinubu requested approval for domestic bonds worth ₦757.9 billion to address outstanding pension liabilities under Nigeria’s Contributory Pension Scheme (CPS).
These letters were read aloud during plenary sessions by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, bringing immediate attention to the scale and significance of the proposed loans.
The total request includes:
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$21.54 billion
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€2.19 billion
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15 billion Japanese Yen
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€65 million in grants
According to Tinubu, these funds are vital to Nigeria’s development efforts in the face of financial constraints.
“The 2025–2026 borrowing plan covers all sectors, with a strong focus on infrastructure, agriculture, health, education, water supply, economic growth, security, job creation, and financial reforms,” President Tinubu explained in the letter to lawmakers.
Why the Loans? Tinubu’s Economic Justification
President Tinubu pointed to a number of pressing financial realities driving the borrowing request. He emphasized that removing fuel subsidies, coupled with the nation’s severe infrastructure deficit, has placed immense strain on the government’s ability to fund critical development projects.
“In light of limited financial resources and declining domestic demand, it is essential to pursue responsible borrowing to address funding gaps,” Tinubu noted.
He assured lawmakers that the borrowed funds would be strategically directed toward long-term developmental goals, particularly in areas with high impact on citizens' daily lives. These include massive investments in:
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Railway infrastructure
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Healthcare facilities
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Education
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Job creation programs
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Security and food security
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Water and sanitation projects
“This initiative will create jobs, support skill acquisition and entrepreneurship, reduce poverty, improve food security, and enhance overall livelihoods,” Tinubu asserted, aiming to position the loans as catalysts for national growth.
N757.9 Billion to Address Pension Arrears
In a separate but equally critical move, President Tinubu also requested legislative backing to issue domestic bonds worth ₦757.98 billion. These bonds, he said, are specifically intended to settle pension arrears under the Pension Reform Act of 2014, which mandates consistent government contributions to retired civil servants’ pension funds.
Due to what Tinubu described as persistent revenue shortfalls, the federal government has struggled to fulfill its obligations under the scheme. The result has been mounting arrears and growing hardship for Nigeria’s retired workforce.
“The federal government has struggled to comply with the provisions of the Pension Reform Act 2014, leading to a buildup of pension arrears,” Tinubu wrote, while noting that the Federal Executive Council (FEC) approved the bond issuance during its February 4, 2025 meeting.
By settling the pension liabilities, Tinubu hopes to achieve three major objectives:
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Improve the welfare of retirees
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Restore confidence in Nigeria’s pension system
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Inject liquidity into the economy
“This will ensure retirees can meet their basic needs, improve their health, and avoid unnecessary suffering,” the President added, urging lawmakers to act swiftly on the approval.
Legislative Response and Next Steps
Following the President’s request, the Senate referred the borrowing and bond requests to its Committee on Local Debts, while the House of Representatives directed them to the Committees on National Planning, Economic Development, and Pensions for further scrutiny.
The National Assembly is expected to deliberate on the requests in the coming weeks, as public interest and media coverage of Nigeria’s growing debt burden intensify.
Nigeria’s Debt Crisis: A Growing Concern
This latest borrowing proposal comes at a time when Nigeria’s public debt is already a matter of serious national concern. According to recent reports from the Debt Management Office (DMO), Nigeria’s total debt stock stood at ₦121.67 trillion as of December 2024 — a figure which includes both external and domestic borrowings by the federal and state governments.
If the current borrowing request is approved in full, Nigeria’s public debt will soar to over ₦180 trillion, raising concerns about the country's debt servicing capacity, fiscal sustainability, and economic independence.
Economic Experts React
Economists have been quick to respond to the news, with mixed reactions. While some support the idea of borrowing to fund essential infrastructure, others worry that continuous borrowing without strong economic reforms could plunge the country into a debt trap.
Dr. Amina Yusuf, a public finance analyst, warned that:
“The real issue is not borrowing, but whether the funds are effectively utilized. If the loans are mismanaged, we will not only have failed projects but also unsustainable debt.”
Others have echoed calls for greater transparency, urging the National Assembly to demand detailed project plans, timelines, and performance indicators before granting approval.
Final Thoughts
President Tinubu’s proposed ₦34.15 trillion borrowing plan is undoubtedly one of the most significant fiscal proposals of his administration. With ₦33.39 trillion from external lenders and ₦757.9 billion in domestic bonds, this move could reshape Nigeria’s economic trajectory — for better or worse.
As the National Assembly prepares to review the request, the spotlight is now on transparency, accountability, and sustainable development. Nigerians deserve to know how these funds will be used, and more importantly, they deserve to see tangible results that improve their lives and secure the future of the country.
Stay tuned to NaijaRush for continued coverage of this critical national issue.
