In a move that has sparked intense debate within political and economic circles, President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for a fresh $21.5 billion external loan and a ₦758 billion domestic bond issuance—despite Nigeria’s public debt already towering at ₦144.6 trillion.
The president’s demands, conveyed through separate letters to the Senate and the House of Representatives, were read during plenary sessions on Tuesday. Both proposals have been referred to the Senate Committee on Local and Foreign Debts for legislative scrutiny, with a report expected within two weeks.
According to Tinubu, the massive external borrowing is intended to finance critical national projects spanning infrastructure, healthcare, education, and water supply. The administration insists that the loans are part of a strategic drive to bridge the country’s widening infrastructure gap, boost employment, and stimulate economic growth.
In a parallel request, Tinubu urged the Senate to authorise the issuance of ₦757.9 billion in domestic bonds. These funds, he said, are earmarked for the payment of outstanding pension liabilities under the Contributory Pension Scheme—an issue that has long plagued retirees and drawn criticism from labour unions.
Additionally, the president is seeking approval to raise a further $2 billion from the domestic capital market to strengthen investments in key sectors of the economy. This proposal, like the others, has also been forwarded to the Senate Committee on Local and Foreign Debts.
Further intensifying the fiscal discourse, Tinubu previously wrote to the House of Representatives requesting the green light for a revised 2025–2026 external borrowing plan. The ambitious borrowing framework comprises $21.5 billion, €2.2 billion, ¥15 billion (Japanese yen), and a €65 billion grant.
While the administration argues that these loans are necessary to fix the nation’s dilapidated infrastructure and catalyze development, critics are raising alarms about Nigeria’s mounting debt profile and its long-term implications.
According to data released by the Debt Management Office (DMO), Nigeria’s total public debt had reached a staggering ₦144.6 trillion by December 31, 2024. Of this, ₦70.2 trillion represented external debt, while ₦74.3 trillion was domestic.
A breakdown shows the federal government shoulders the bulk of the burden, owing ₦62.9 trillion in external debt and ₦70.4 trillion domestically. In contrast, state governments collectively owe ₦7.3 trillion in foreign debt and ₦3.9 trillion in local debt.
As the National Assembly deliberates over the president’s latest borrowing requests, questions loom large over Nigeria’s debt sustainability, repayment strategy, and the actual impact of such loans on the daily lives of ordinary citizens.
PIONEER NEWS 