Nigeria’s Debt Projected to Surpass N180 Trillion as Tinubu Seeks Fresh N34 Trillion in Loans
ABUJA — Nigeria’s public debt could climb past N180 trillion following President Bola Tinubu’s latest request to the National Assembly for approval to secure over N34 trillion in new loans, both domestically and from international sources.
In formal letters presented to the Senate and the House of Representatives—read by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas—President Tinubu outlined a borrowing plan covering the 2025–2026 fiscal period. The proposal includes an external borrowing request of approximately $21.5 billion (about N33.39 trillion at the official exchange rate of N1,590 per dollar) and a domestic bond issuance worth N757.9 billion aimed at clearing unpaid pension liabilities.
The President emphasized that the loans are intended to support key sectors such as infrastructure, agriculture, education, healthcare, water resources, security, job creation, and financial reforms. He also noted that the borrowing initiative is part of a broader economic strategy following the elimination of fuel subsidies, which has had far-reaching fiscal impacts.
“The borrowing plan targets projects that will stimulate growth and development, spanning across all 36 states and the Federal Capital Territory,” Tinubu stated. He listed infrastructure development—particularly in rail transport and public health—among the core priorities, adding that the funds would also be directed toward initiatives aimed at poverty alleviation, food security, and youth empowerment.
In a separate communication, Tinubu sought legislative approval for the issuance of Federal Government bonds to offset over N757 billion in unpaid pension contributions under the Contributory Pension Scheme (CPS). Citing the Pension Reform Act of 2014, the President admitted that consistent non-compliance due to revenue constraints has led to a growing backlog of unpaid entitlements, causing distress for many retirees.
He noted that the Federal Executive Council had already endorsed the bond proposal during its February 4, 2025 meeting. The administration, he said, sees the bond issuance as a means to restore confidence in the pension system and ease financial pressure on pensioners, while also stimulating liquidity within the economy.
Expert Opinion: Borrowing Must Be Strategic
Economic analyst and public affairs expert Clifford Egbomeade weighed in on the loan request, saying the move could be beneficial if the funds are channeled into impactful sectors and managed with transparency.
“Clearing pension arrears will immediately ease the burden on retirees and potentially boost local demand,” Egbomeade observed. “And if the external borrowing is sourced on favorable terms and directed toward sectors like infrastructure and agriculture, the economy could see a positive long-term impact.”
However, he cautioned that Nigeria’s growing debt profile—already at N144.7 trillion (around $94.2 billion) by the end of 2024—raises sustainability concerns. “Debt servicing already consumes a significant chunk of government revenue. The real challenge will be ensuring that borrowed funds are well-utilized and tied to structural reforms that drive revenue and reduce fiscal leakages.”
He concluded that for the borrowing plan to be effective, rigorous oversight and strategic implementation will be essential to avoid worsening Nigeria’s financial strain.
