Nigeria’s growing debt burden has come under renewed scrutiny following President Bola Tinubu’s request for a fresh $7.707 billion external loan, amid concerns over the country’s rising public debt, increasing debt-servicing obligations and the effectiveness of previous borrowings.
The latest borrowing proposal has reignited debate over the National Assembly’s oversight responsibilities, particularly the Senate’s role in scrutinizing successive loan requests and ensuring that borrowed funds are properly utilized to deliver tangible benefits to Nigerians.
Figures released by the Debt Management Office (DMO) show that Nigeria’s total public debt stood at N166.79 trillion, equivalent to $120.93 billion, as of June 30, 2026.
The debt comprises N91.59 trillion in domestic obligations and N75.20 trillion in external debt. The Federal Government accounted for N152.77 trillion, while state governments and the Federal Capital Territory owed N14.01 trillion.
The latest figure represents an increase of N79.41 trillion, or approximately 90.9 per cent, compared with the N87.38 trillion recorded in June 2023, shortly after Tinubu assumed office.
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However, the increase reflects not only fresh borrowing but also existing obligations and exchange-rate adjustments following the depreciation of the naira.
Debt Servicing Consumes 65% of Government Revenue
Concerns over Nigeria’s debt profile have been heightened by President Tinubu’s acknowledgement that debt servicing consumed approximately 65 per cent of government revenue in the first half of 2026.
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The development has raised questions about the amount of government revenue available for critical sectors, including healthcare, education, infrastructure and security.
Tinubu, however, has maintained that the country’s debt remains manageable, putting public debt at 35.75 per cent of Gross Domestic Product (GDP) in the second quarter of 2026.
Tinubu Seeks $7.7bn Fresh External Loan
The latest borrowing request, amounting to $7,707,404,882.49, is intended to finance part of the external borrowing provision of N10.79 trillion contained in the 2026 Appropriation Act.
Senate President Godswill Akpabio presented the President’s letter during plenary on Wednesday, November 4, 2026.
Akpabio explained that the revised proposal superseded an earlier request for $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
The request was subsequently referred to the Senate Committees on Local and Foreign Debts and Appropriations for consideration.
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The revision has raised further questions about how the government determines its borrowing requirements and whether lawmakers receive sufficient information about proposed projects, interest rates, repayment schedules and other financial conditions before approving external loans.
Under Section 21(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, external loans cannot be approved or obtained by the Minister of Finance unless their terms and conditions have been presented to the National Assembly and approved by resolution.
Section 27 of the Act also provides for legislative approval of standard terms and conditions governing external loans and guarantees.
Senate Faces Scrutiny Over Previous Loan Approvals
The controversy has also brought renewed attention to the speed with which some previous borrowing requests received legislative approval.
On March 31, 2026, the National Assembly approved external financing facilities totaling approximately $6 billion on the same day the requests were presented.
The package included a structured financing arrangement of up to $5 billion with First Abu Dhabi Bank for budget financing, liquidity management and existing debt obligations.
It also included approximately $1 billion in export financing arranged through Citibank for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.
Other major borrowing approvals since 2023 include $7.8 billion and €100 million in December 2023 under the 2022–2024 External Borrowing Plan.
In November 2024, lawmakers approved $2.209 billion to finance the budget deficit, while an external borrowing programme of approximately $21.5 billion was approved in July 2025 for projects covering transportation, energy, agriculture, healthcare, education, housing and security.
The National Assembly also approved $2.347 billion in October 2025, comprising approximately $1.229 billion in new financing and $1.118 billion for refinancing maturing Eurobonds.
Another $516.3 million facility was approved in May 2026 for the Sokoto–Badagry Superhighway.
However, these approval figures do not necessarily represent fresh debt incurred, as some cover multiyear borrowing programmes, while others involve refinancing existing obligations.
Similarly, the December 2023 approval to securities approximately N7.3 trillion in Central Bank of Nigeria Ways and Means advances converted existing short-term obligations into longer-term securities rather than creating an entirely new debt of the same amount.
Senator Umeh Questions Where Previous Borrowings Have Gone
The growing debt burden has attracted criticism from some lawmakers and opposition figures, including Senator Victor Umeh, representing Anambra Central, and former Vice-President Atiku Abubakar.
Speaking on Channels Television’s Politics Today on October 27, 2026, while reacting to the earlier $20.52 billion borrowing request, Umeh questioned why successive loan approvals had failed to resolve outstanding budgetary obligations and payments owed to contractors.
According to the senator, the government had repeatedly assured Nigerians that borrowed funds would finance budget implementation, yet several capital projects remained unfunded.
“The truth is that we have approved so much funds to be borrowed in the past, and on each occasion we’ve been told that this borrowing would be able to fund the budgets and these budgets have remained unfunded up till this day,” Umeh said.
He further expressed concern that multiple budgets were being implemented simultaneously without corresponding funding for capital projects.
“Three budgets are running concurrently and the government is not meeting its obligations to contractors on capital projects and so on and so forth.
“So if you borrow to finance a budget and you are not able to finance that budget, where has the money gone to? That is the question in the lips of everybody,” he added.
Atiku Urges Senate to Scrutinize Loan Request
Former Vice-President Atiku Abubakar has also challenged the National Assembly to subject the latest borrowing proposal to thorough scrutiny before granting approval.
Atiku argued that lawmakers must demand comprehensive details of the projects to be financed, their individual costs, proposed interest rates, repayment schedules and other contractual obligations.
“The Senate must scrutinize this proposal line by line. It must demand a full project list, clear funding allocations, the proposed loan terms and a credible repayment plan before considering approval.
“No government should receive a blank cheque to contract foreign debt in the name of budget implementation,” he said.
The former Vice-President also questioned the government’s continued reliance on foreign borrowing amid the country’s economic difficulties.
He maintained that Nigerians deserved clear evidence of the benefits of previous loans and expressed concern about borrowing conditions that could depend on prevailing market circumstances when the facilities are eventually raised.
Presidency Defends Tinubu’s Borrowing Strategy
Despite the criticism, the Presidency has defended the administration’s borrowing strategy, insisting that financing is increasingly being directed towards infrastructure and productive assets capable of stimulating economic growth.
In an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, released towards the end of October 2026, Tinubu argued that the value of borrowing should be assessed based on the economic benefits of the projects financed rather than the volume of debt alone.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” the President said.
He identified the Lagos–Calabar Coastal Highway, Sokoto–Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and the modernization of major commercial ports in Lagos as strategic investments expected to reduce logistics costs, improve productivity and attract private capital.
According to Tinubu, his administration is pursuing longer-term financing arrangements designed to align repayment obligations with the economic lifespan of infrastructure assets while reducing refinancing pressures.
The President also highlighted improvements in government revenue, including an increase in the tax-to-GDP ratio from seven per cent to 12.5 per cent.
He further stated that net Federation Account Allocation Committee (FAAC) distributions increased from approximately N15.2 trillion in 2024 to N21.9 trillion in 2025, while Nigeria recorded a trade surplus of N20.1 trillion in the first half of 2026.
Tinubu maintained that these developments had strengthened the government’s capacity to finance development while pursuing fiscal sustainability.
Nigeria’s Debt Profile Under Successive Administrations
The latest borrowing controversy has also revived comparisons of Nigeria’s debt profile under successive administrations since 1999.
Former President Olusegun Obasanjo secured substantial external debt relief through the Paris Club agreement, reducing Nigeria’s external obligations from approximately $28.04 billion in 1999 to $3.65 billion by the end of 2007.
However, the Federal Government’s domestic debt increased from about N798 billion to N2.17 trillion during the same period.
Borrowing subsequently increased under the administrations of Umaru Musa Yar’Adua and Goodluck Jonathan, with Nigeria’s total public debt reaching $63.81 billion by June 2015.
Under former President Muhammadu Buhari, the figure increased from $63.81 billion in June 2015 to $113.42 billion in June 2023, representing an increase of approximately $49.62 billion.
The June 2023 debt stock included the securitization of N22.7 trillion in previously accumulated Central Bank Ways and Means advances.
Under Tinubu, Nigeria’s total public debt increased from $113.42 billion in June 2023 to $120.93 billion in June 2026, representing a difference of approximately $7.51 billion in dollar terms.
However, the naira value increased considerably from N87.38 trillion to N166.79 trillion, reflecting additional borrowing and the impact of exchange-rate movements.
The DMO applied an exchange rate of approximately N770.38 to the dollar in June 2023, compared with N1,379.18 in June 2026, making direct comparisons of debt stocks across administrations sensitive to currency depreciation.
The figures also cover obligations incurred by the Federal Government, state governments and the Federal Capital Territory.
Pressure Mounts on National Assembly
With the President’s latest $7.707 billion borrowing request now before the National Assembly, attention has shifted to the level of scrutiny lawmakers will apply before deciding whether to approve the facility.
For the Senate, the immediate responsibility is to establish the proposed loan’s financial terms, repayment obligations, project allocations and expected economic benefits before granting approval.
For the Tinubu administration, the challenge is to demonstrate that the growing debt burden is translating into completed infrastructure, improved public services and measurable economic progress.
The President has acknowledged that securing financing alone does not guarantee development, stressing that the real value lies in delivering completed projects and improving the lives of Nigerians.
“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives,” Tinubu said.
As Nigeria considers another multibillion-dollar external loan, the central question remains whether the proposed borrowing will deliver the development benefits promised or further intensify the country’s debt-servicing burden.
