President Bola Ahmed Tinubu’s administration could see Nigeria’s total debt rise to a staggering N94.5 trillion in under two years if the latest external borrowing request of $21.5 billion, €2.2 billion, and ¥15 billion — equivalent to N45 trillion — is approved and fully disbursed.
The new borrowing proposal, submitted in May 2025, seeks legislative approval for the massive foreign loans to fund infrastructure, energy, and social programs through 2026. Using prevailing exchange rates — $1 = N1,600, €1 = N1,800, and ¥1 = N11 — the conversion totals approximately N38.525 trillion, which would bring the administration’s borrowing tally to N94.5 trillion when combined with previous confirmed loans.
Breakdown of Borrowing
External Loans (Confirmed):
$800 million World Bank Loan (July 2023): N1.28 trillion
$3 billion AFREXIM Loan (August 2023): N4.8 trillion
$7.8 billion External Loan Request (November 2023): N12.48 trillion
Total Confirmed External Borrowing: N18.56 trillion
Domestic Borrowing:
N20.1 trillion Bonds (June 2023 – May 2024)
N757.98 billion Pension Liabilities Bonds (May 2025): N0.758 trillion
$2 billion Foreign Currency Bonds in Domestic Market (May 2025): N3.2 trillion
Total Domestic Borrowing: N24.058 trillion
Ways and Means Securitization:
N7.3 trillion (December 2023)
Subtotal (Confirmed Non-Overlapping Debt):
N18.56 trillion + N24.058 trillion + N7.3 trillion = N49.918 trillion
If New Request Is Approved:
If the new borrowing request — totaling N38.525 trillion — is added, the administration’s total debt burden rises to N88.44 trillion. However, accounting for additional borrowing instruments like pension bonds and foreign currency bonds requested in May 2025, the total figure rounds up to nearly N94.5 trillion.
Fiscal Concerns Mount
Economists and opposition lawmakers have raised concerns about the sustainability of Nigeria’s rising debt levels, particularly in the face of low revenue generation, currency depreciation, and weak foreign reserves. Critics argue that while borrowing is not inherently bad, the pace and scale under Tinubu’s administration could jeopardize future economic stability if not matched with clear returns on investment and improved fiscal discipline.
The Debt Management Office (DMO) has yet to issue a formal update on the disbursement status of the newly requested loans, though legislative approval is pending.
Conclusion
With this trajectory, President Tinubu may preside over the most aggressive borrowing cycle in Nigeria’s history. Whether this financial strategy will yield long-term gains or strain public finances further remains to be seen.