Nigeria’s debt to hit N183trn as Tinubu seeks fresh $24bn loan

President Bola Tinubu’s fresh loan proposal is projected to push Nigeria’s total public debt to an unprecedented N183 trillion, up from nearly N145 trillion as of December 2024.

In his letter to the National Assembly on Tuesday, President Tinubu sought approval for a new external borrowing plan totaling $21.5 billion, €2.2 billion, ¥15 billion, and a €65 million grant. He also requested legislative approval for the issuance of domestic bonds worth N757.9 billion to clear outstanding pension liabilities.

This combined borrowing plan would increase Nigeria’s debt stock by over N38 trillion, adding further strain to the country’s already burdened loan servicing obligations amid naira devaluation and limited revenue generation.

In his communication—read separately by Senate President Godswill Akpabio and House Speaker Abbas Tajudeen—Tinubu outlined the strategic objectives of the 2025–2026 borrowing framework, emphasizing investment in critical sectors.

“The 2025–2026 borrowing plan covers all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others,” the president stated.

He explained that the borrowing was made necessary by the removal of fuel subsidy and its broad economic implications.

“In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall,” he wrote.

Tinubu assured legislators that the funds would be directed toward critical infrastructure projects, including railway development, healthcare, and development programmes across all 36 states and the Federal Capital Territory (FCT).

“This initiative aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, as well as to improve the livelihoods of Nigerians,” Tinubu noted.

In a separate letter, the president sought the National Assembly’s approval to issue federal government bonds in the domestic market to offset pension liabilities under the Contributory Pension Scheme (CPS), amounting to N757,983,246,572.

Citing the Pension Reform Act (PRA) 2014, Tinubu acknowledged that the government had struggled to meet statutory pension obligations due to revenue shortfalls, resulting in arrears and hardship among retirees.

“The Senate is invited to note that the federal government has not been compliant with the implementation of the above provisions of the PRA 2014 over the years due to revenue challenges, leading to accumulation of pension arrears with the attendant ICU retirees,” he stated.

He added that the bond proposal received Federal Executive Council (FEC) approval during its February 4, 2025 meeting.

According to the president, settling the pension backlog will improve retirees’ welfare, restore trust in the pension system, and boost economic liquidity.

“It will enable the Federal Government of Nigeria to meet obligations under the CPS and restore confidence in the pension industry.

“It will also ensure positive welfare even for the retirees, as this will enable them to meet their basic needs… improve health and avoid untimely death,” the letter noted.

Tinubu urged lawmakers to expedite consideration of his requests, pledging transparency and accountability from his administration.

The Senate referred the proposals to its Committee on Foreign and Domestic Loans, while the House directed them to the Committee on National Planning and Economic Development and the Committee on Pensions. The Senate committee is expected to report back in two weeks.