FG’s  Endless Borrowing 

The Senate last Tuesday approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle.

The comprehensive borrowing package includes $21.19billion in direct foreign loans, €4billion, ¥15billion, a $65million grant and domestic borrowing through government bonds totalling approximately ₦757billion.

Also included was a provision to raise up to $2billion through a foreign-currency-denominated instrument in the domestic market.

The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Aliyu Wamako, who noted that the plan was first submitted to the National Assembly on May 27,2025 but was delayed due to legislative recess and documentation issues from the Debt Management Office (DMO).

The Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, defended the borrowing, saying it aligns with global economic practices.

The fresh approval comes amid Nigeria’s expanding borrowing profile under the Tinubu’s administration and the huge revenue being raked in by the federal government.

For instance, in November 2023, the president sought legislative approval for a $7.8 billion and €100 million borrowing plan to fund key infrastructure and social development projects over the 2022–2024 period.

In March 2025, Tinubu sought legislative approval for a new external borrowing plan of over $21.5 billion, and a domestic bond issuance of ₦757.9 billion to settle outstanding national pension liabilities.

Meanwhile, as of March 2025, the country’s total public debt stock stood at over ₦121 trillion (approximately $91 billion), according to figures released by the DMO.

Despite frequently raised concerns over the sustainability of the country’s borrowing spree, warning of future repayment burdens and fiscal vulnerabilities, the federal government has, however, maintained that concessional loans are essential to bridging Nigeria’s infrastructure gap and stimulating growth.

Each request comes amid clamour by opposition political parties, civil society organisations and others for the federal government to stop borrowing for recurrent expenditure. They also urged agents and officials of the federal government, including the Presidency to curtail their extravagant and excessive lifestyles, and tackle  corruption in the system, which they feel is still very high.

Despite these borrowings, life has not improved for many Nigerians. Infrastructure such as roads are still in deplorable conditions; there is no electricity supply and no quality hospitals.

Again, federal institutions are still grossly under-funded while lecturers threaten strike.