President Bola Tinubu has officially requested the National Assembly’s approval for a $21.5 billion foreign loan. The new Nigeria Loan plan also includes a ₦758 billion domestic bond to support national development and pensions.
Letters containing the borrowing proposals were sent to both chambers of the National Assembly. The letters were read during Tuesday’s plenary sessions and subsequently referred to the Senate Committee on Local and Foreign Debts. The committee has been tasked with evaluating the proposals and is expected to present its report within two weeks.
In his letter, President Tinubu stated that the Nigeria Loan would be used for essential projects across various sectors. These include infrastructure, education, health care, and clean water supply. He believes the funds will help bridge gaps in service delivery and improve overall national productivity.
Alongside the foreign loan request, the President also asked for approval to issue ₦757.9 billion in domestic bonds. This bond issuance is intended to cover outstanding liabilities under the Contributory Pension Scheme. The President described this move as a step towards fulfilling past obligations to retired civil servants.
An additional request seeks to raise $2 billion through the local debt market. This portion of the Nigeria Loan is meant to support key sectors such as agriculture, manufacturing, and technology. The government hopes these investments will stimulate growth and reduce unemployment.
In a separate communication, Tinubu also asked the House of Representatives to approve the revised 2025–2026 external borrowing plan. The updated plan includes $21.5 billion, €2.2 billion, and ¥15 billion from Japan. It also contains a proposed €65 billion grant. These funds are expected to finance long-term development and job creation programs.
President Tinubu emphasized that Nigeria’s infrastructure deficit must be addressed urgently. He expressed hope that the Nigeria Loan will play a major role in transforming the economy. According to him, these loans are necessary for achieving national development goals.
According to SaharaReporter, recent figures from the Debt Management Office (DMO) show that Nigeria’s total public debt has reached ₦144.6 trillion as of December 31, 2024. External debt accounted for ₦70.2 trillion, while domestic debt made up ₦74.3 trillion. This data highlights the growing financial burden on the country.
Out of the total external debt, the federal government was responsible for ₦62.9 trillion. It also accounted for ₦70.4 trillion in domestic debt. State governments held ₦7.3 trillion in external debt and ₦3.9 trillion domestically.
Despite the rising debt levels, the government insists that the Nigeria Loan is critical for economic recovery. Officials believe that without these funds, key sectors would remain underdeveloped. The loans are seen as a strategic move to reposition Nigeria’s economy.
It should, however, be noted that approval of the new Nigeria Loan by the National Assembly remains pending. Legislative action will follow after the committee submits its report. Lawmakers are expected to debate the merits and risks of the proposed borrowings in the coming weeks.
