Nigeria’s total public debt is expected to rise significantly after the Senate approved a fresh $6 billion external loan requested by President Bola Ahmed Tinubu.
With the approval, analysts say the country’s debt profile could climb to about N155 trillion, adding to concerns about Nigeria’s rising borrowing level and debt servicing obligations.
The approval reportedly came just a few hours after the request was presented to the Senate during plenary in Abuja. The letter from the President was read by Senate President Godswill Akpabio before lawmakers quickly considered and approved the request.
According to details presented to the lawmakers, the proposed loan forms part of the federal government’s broader plan to raise external funds to support budget implementation, infrastructure development and other financial commitments.
A major part of the borrowing plan involves a $5 billion external financing programme expected to be arranged through First Abu Dhabi Bank in the United Arab Emirates.
The financing structure is designed as a special arrangement that allows the government to draw funds gradually in phases, rather than collecting the entire amount at once.
Government officials explained that the funds will be used to finance priority projects, support the implementation of the national budget and also refinance some existing debts that carry higher interest rates.
Another part of the request includes an additional $1 billion loan facility expected to support the rehabilitation and upgrade of major Nigerian ports, particularly the Lagos Port Complex and Tin Can Island Port.
The port rehabilitation project is expected to improve cargo handling operations, strengthen safety standards and enhance Nigeria’s competitiveness as a major maritime trade hub in West Africa.
However, the development has also attracted criticism from some economists and political figures who fear that continuous borrowing could increase Nigeria’s financial pressure in the future.
Experts warn that external borrowing exposes the country to foreign exchange risks, especially if the value of the naira continues to fluctuate against major currencies.
Former Vice President Atiku Abubakar also criticised the Senate for approving the loan request quickly, arguing that such major financial decisions should undergo deeper scrutiny before being approved.
Despite the concerns raised by critics, government officials maintain that the borrowing plan is necessary to support development projects and address pressing financial needs facing the country.
Nigeria’s total public debt stood at about N146.69 trillion by the end of 2025, meaning the newly approved borrowing could push the figure significantly higher in the coming months.
Post A Comment: