President Bola Tinubu has sought the approval of the National Assembly for the Federal Government’s proposed supplementary external borrowing plan of $20.5 billion and €1.45 billion for 2026 and 2027.
The proposed loans are expected to finance critical infrastructure, agriculture, education and other priority sectors as part of the administration’s efforts to drive economic growth and development.
The request comes amid mounting concerns over Nigeria’s growing debt profile, rising debt-servicing obligations and the government’s continued dependence on borrowing to fund public expenditure.
In April, Channels Television reported that the Federal Government had increased its projected borrowing for 2026 by ₦11.31 trillion, bringing the total to ₦29.20 trillion. The government also projected a fiscal deficit of ₦31.46 trillion and debt-servicing costs of ₦15.81 trillion.
The Tinubu administration’s borrowing policy has continued to attract criticism, particularly following the removal of the petrol subsidy, which was expected to release additional funds for infrastructure and other critical public services.
In April, Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), warned that Nigeria was at risk of a debt crisis, questioning why the government continued to accumulate loans despite the removal of the subsidy. He also raised concerns over outstanding payments to contractors and delays in implementing capital projects.
The Emir of Kano, Muhammadu Sanusi II, had similarly challenged the government’s continued borrowing, arguing that the savings from subsidy removal should translate into improved public finances and tangible benefits for citizens.
Despite the criticism, the Federal Government has defended its borrowing strategy, maintaining that external loans are necessary to finance infrastructure and other development projects that could stimulate economic activities.
In July, Finance Minister Taiwo Oyedele dismissed claims that the Tinubu administration had borrowed about ₦80 trillion in three years. He explained that the increase in the country’s reported debt stock was partly attributable to the depreciation of the naira against foreign currencies and the recognition of existing obligations, rather than fresh borrowing alone.
The National Assembly had earlier approved a $2.347 billion external borrowing request in October 2025 to partly finance the 2025 budget deficit and refinance maturing Eurobonds. The proposal also included a $500 million sovereign sukuk for infrastructure development.
Although borrowing can support economic growth when channelled into productive investments, concerns remain over the cost of servicing Nigeria’s debts, the transparency of loan utilisation and the government’s ability to ensure that borrowed funds deliver meaningful economic and social benefits.
The latest proposal is expected to renew scrutiny of the country’s fiscal direction, with lawmakers facing the task of weighing the administration’s development financing needs against the long-term implications of additional external debt for the Nigerian economy.
