Nigeria’s President Bola Ahmed Tinubu has submitted a formal request to the National Assembly seeking legislative approval to secure up to $24 billion in external loans and $478 million in domestic bonds to finance key national projects spanning infrastructure, healthcare and agriculture.
The financing request, contained in a letter read on the floor of the Senate on Tuesday by Senate President Godswill Akpabio, is part of the Federal Government’s 2024–2026 rolling external borrowing plan.
According to the document, the proposed external loans include $21.5 billion, €2 billion and ¥15 billion, respectively.
The presidency stated that the borrowing will be implemented gradually and only on a need-basis as actual drawdowns are subject to project readiness and lender conditions.
“All of which will improve the livelihoods of the average Nigerian,” Tinubu said, referencing the targeted impact of the projects.
The Ministry of Finance, in a follow-up statement, clarified that the borrowing plan does not imply full execution within the proposed period. For 2025, the external borrowing component is projected at $1.23 billion with the disbursement scheduled for the second half of the year.
“The borrowing plan does not equate to actual borrowing for the period,” the ministry stated. “Each loan is tied to specific projects and subject to external funding negotiations and approvals.”
The request comes amid economic pressures exacerbated by volatile oil prices, which have fallen below Nigeria’s 2024 benchmark of $75 per barrel. Brent crude is currently trading at approximately $60.92 per barrel, putting budgetary projections at risk.
Nigeria, Africa’s top crude oil exporter, is seeking to reduce overdependence on oil revenues, which still account for over 80% of export earnings. The slump in global oil prices, coupled with macroeconomic uncertainties, has necessitated broader fiscal interventions.
As part of the borrowing plan, Tinubu also requested approval for a 758 billion naira ($478 million) domestic bond to clear longstanding pension liabilities owed to retired government workers.
In addition, a dollar-denominated domestic bond of $2 billion has been proposed to enhance liquidity and manage existing obligations.
The proposed borrowing framework aligns with the administration’s commitment to funding development initiatives that will catalyze job creation, improve social services and boost economic productivity.
While the government insists that the borrowing is strategic and sustainable, concerns persist over Nigeria’s rising debt profile.
According to the Debt Management Office (DMO), the country’s total public debt stood at N97.34 trillion as of December 2023, representing both domestic and external liabilities.
The National Assembly is expected to deliberate on the president’s request in the coming weeks. The outcome will be pivotal in determining the extent to which Tinubu’s administration can fund critical projects under the current Medium-Term Expenditure Framework.
As the president approaches the midpoint of his first four-year term, analysts note that the success of his economic reforms will hinge heavily on the strategic deployment of borrowed funds and the government’s ability to manage fiscal risks without compromising long-term debt sustainability.
