Nigeria’s Debt Nears N180 Trillion Mark as Tinubu Seeks N34 Trillion More in Loans

Abuja, Nigeria – Nigeria’s public debt is poised to exceed N180 trillion following President Bola Tinubu’s request to the National Assembly for approval to secure new external and domestic loans totaling N34.15 trillion.

In letters addressed to both the Senate and the House of Representatives, President Tinubu is seeking parliamentary consent for a new external borrowing plan amounting to over $21.5 billion, which translates to approximately N33.39 trillion at the official exchange rate of N1,590 per dollar. Additionally, he has requested approval for the issuance of domestic bonds worth N757.9 billion to settle outstanding pension liabilities.

The letters, read during plenary sessions by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, underscored the strategic importance of the proposed 2025–2026 borrowing plan, which is designed to target crucial sectors of the Nigerian economy.

President Tinubu articulated the broad scope of the initiative, stating, “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.”

The proposed external borrowing package is comprehensive, comprising $21.54 billion, €2.19 billion, and 15 billion Japanese Yen, along with a grant of €65 million. President Tinubu justified the necessity of these borrowings by citing the recent removal of fuel subsidies and the nation’s significant infrastructure deficit.

“In light of limited financial resources and declining domestic demand, it is essential to pursue responsible borrowing to address funding gaps,” he explained. He further assured lawmakers that the funds would be judiciously invested in critical infrastructure projects such as railways, healthcare facilities, and nationwide development initiatives across all 36 states and the Federal Capital Territory (FCT).

The President emphasized the anticipated socio-economic benefits of these investments, adding, “This initiative will create jobs, support skill acquisition and entrepreneurship, reduce poverty, improve food security, and enhance overall livelihoods.”

In a separate but related request, President Tinubu also sought legislative approval to issue domestic bonds worth N757.98 billion. These bonds are intended to settle long-standing pension arrears under the Contributory Pension Scheme (CPS). He acknowledged that due to persistent revenue challenges, the federal government had regrettably failed to fulfill some statutory pension obligations, leading to considerable hardship for retirees.

“The federal government has struggled to comply with the provisions of the Pension Reform Act 2014, leading to a buildup of pension arrears,” Tinubu elaborated. He further noted that the Federal Executive Council had formally approved the bond issuance during its meeting on February 4, 2025.

ADVERTISEMENT

The President stressed that settling these arrears would significantly improve the welfare of retirees, restore much-needed confidence in the nation’s pension system, and inject crucial liquidity into the economy.

“This will ensure retirees can meet their basic needs, improve their health, and avoid unnecessary suffering,” the President stated, urging the National Assembly to expedite its approval of these requests.

Following the reading of the requests, the Senate referred them to its committee on local debts for further deliberation, while the House of Representatives directed them to its committees on national planning, economic development, and pensions for thorough review.