President Bola Ahmed Tinubu has formally requested the National Assembly to approve external loans amounting to $21.5 million and ¥15 billion as components of the federal government's proposed 2025-2026 external borrowing plan. The request also includes a grant of €65 million to be incorporated into the borrowing framework.

Senate President Godswill Akpabio read the president's letter during Tuesday's plenary session, outlining the administration's financial strategy for the coming fiscal period.

According to President Tinubu, the funds are earmarked for critical national development priorities including employment generation, skills acquisition, entrepreneurship promotion, poverty reduction, and enhancing food security initiatives. The president emphasized that the proposed projects and programmes would have nationwide impact, benefiting all 36 states and the Federal Capital Territory.

"The proposed projects and programmes are designed to have a nationwide impact, spanning all 36 states of the federation and the Federal Capital Territory," the president stated in his letter to the lawmakers.

Rising National Debt Concerns

This fresh borrowing request comes at a time when Nigeria's total public debt has reached N144.7 trillion (approximately $94.2 billion), according to December 2024 data from the Debt Management Office.

A breakdown of the existing debt profile reveals that domestic debt accounts for 51.4 percent (N74.4 trillion) of the total, while external debt constitutes 48.6 percent (N70.3 trillion).

The National Assembly is expected to deliberate on the president's request in the coming days, with the outcome likely to have significant implications for Nigeria's fiscal policy and debt management strategy.

Economic analysts continue to express concerns about Nigeria's growing debt burden and its potential impact on fiscal sustainability, particularly as the country grapples with various economic challenges including inflation and currency depreciation.