…the proposed borrowing would add about N38.24 trillion to the country’s existing debt
The iNews Times reports that Nigeria’s public debt is poised to skyrocket as President Bola Tinubu has requested the National Assembly’s approval for a fresh foreign loan of approximately $24.14 billion.
The fresh loan if approved, would increase the country’s total public debt to over N182.91 trillion by the coming year (2026).
The proposed borrowing, which includes $21.54 billion, €2.19 billion, and ¥15 billion, would add about N38.24 trillion to the existing debt stock of N144.67 trillion recorded at the end of 2024.
According to President Tinubu’s letter to the House of Representatives, the loan is intended to support key sectors such as infrastructure, agriculture, healthcare, education, water resources, security, and public finance reforms.
If approved in full, the new borrowing would push Nigeria’s external debt from $45.78 billion to approximately $69.92 billion, representing a 52.7% increase. In naira terms, the external portion would exceed N108 trillion.
iNews Times reports that the development has raised concerns about the country’s debt sustainability, given the significant jump in public de bt over the past year, driven by substantial increases in both domestic and external borrowings, as well as the depreciation of the naira against major foreign currencies.
President Tinubu however noted that the projects covered by the plan had undergone technical and economic appraisals and were selected for their potential to stimulate growth, generate jobs, and improve public service delivery.
