Tinubu seeks NASS approval to borrow $21.5 million, ¥15 billion loan
President Bola Tinubu has requested the National Assembly’s approval to secure external loans of $21.5 million and ¥15 billion, along with a grant of €65 million, as part of the federal government’s proposed 2025–2026 external borrowing plan.
The president’s request was contained in a letter read by the Senate President, Godswill Akpabio, during the plenary on Tuesday.
In the letter, Mr Tinubu explained that the funds will be used to generate employment, promote skill acquisition, enhance entrepreneurship, reduce poverty, and boost food security.
He emphasised that the proposed projects and programmes are designed to have a nationwide impact, spanning all 36 states of the federation and the Federal Capital Territory (FCT).
After reading the letter, Mr Akpabio referred the request to the Senate Committee on Local and Foreign Debt.
He directed the committee to review the proposal and present its findings to the Senate within two weeks.
Nigeria’s public debt has increased in recent years, raising concerns about the country’s fiscal sustainability.
According to Nigeria’s Debt Management Office (DMO), as of 31 December 2024, Nigeria’s total public debt stood at ₦144.7 trillion (approximately $94.2 billion).
About 51.4 per cent of the total (₦74.4 trillion) is domestic debt while 48.6 per cent (₦70.3 trillion) is external debt.
The rising debt has resulted in increased debt servicing costs. In 2023, Nigeria spent ₦7.8 trillion on debt servicing, a 121 per cent increase compared to ₦3.52 trillion in the previous year.
The amount spent on debt servicing rose to ₦13.12 trillion in 2024, a 68 per cent increase from the 2023 figure.
Experts said these high debt servicing costs means less funds for important sectors such as infrastructure and social services, potentially hindering economic growth and development.
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