President Bola Ahmed Tinubu has formally approached the National Assembly to obtain approval for fresh external borrowings totaling $21.5 million and ¥15 billion.
The borrowing request also includes a €65 million grant, which the federal government intends to incorporate into its external financing plan for the 2025–2026 period.
This request was contained in a letter addressed to the National Assembly and was read aloud by Senate President Godswill Akpabio during the plenary session held on Tuesday.
Diaspora Digital Media (DDM) reports that President Tinubu outlined the purposes for the proposed loans in his communication to the legislature.
According to the president, the borrowed funds will be strategically used to support various projects that aim to address key developmental challenges across the nation.
He stated that the loans would be directed at promoting employment generation, enhancing skill acquisition initiatives, boosting entrepreneurial capacity, and reducing poverty levels nationwide.
In addition, Tinubu noted that food security would be a major focus of the funded projects, as the government seeks to strengthen the agricultural sector.
He also highlighted that the projects are intended to have a broad impact across the 36 states of the federation as well as the Federal Capital Territory (FCT).
This fresh borrowing plan comes against the backdrop of Nigeria’s escalating public debt profile, which has drawn increasing scrutiny from economic analysts and the public.
According to the Debt Management Office (DMO), Nigeria’s total public debt stood at N144.7 trillion, approximately $94.2 billion, as of December 2024.
A detailed breakdown of the debt reveals that N74.4 trillion, representing 51.4 percent of the total, is domestic debt, while the external component amounts to N70.3 trillion or 48.6 percent.
Economic observers have raised concerns that Nigeria’s debt levels are becoming unsustainable, especially in light of sluggish revenue growth and rising fiscal obligations.
However, government officials maintain that the loans will be invested in priority sectors that can stimulate economic growth and development.
The National Assembly is expected to consider the president’s request in upcoming sessions, as debates over Nigeria’s fiscal path continue.
