Nigeria’s external debt may top N200trn by year end – Daily Trust

From Abdullateef Aliyu, Lagos; Hussein Yahaya & Mumini Abdulkareem, Ilorin

President Bola Tinubu has written to the Senate requesting approval for the Federal Government’s 2026–2027 Supplementary External Borrowing Plan, totaling $20.52 billion and €1.05 billion (roughly $21.5 billion mixed), a transfer that might push Nigeria’s external debt burden larger because the Federal Government seeks further funds for infrastructure and different essential sectors.

The proposed borrowing includes $20.52 billion and €1.05 billion, equal to roughly $21.5 billion mixed.

At prevailing change charges, the ability might translate into about N30 trillion, additional growing the naira worth of the nation’s external debt.

If authorized and totally borrowed, the brand new facility might contribute to Nigeria’s external debt exceeding N200 trillion in naira phrases by the end of the year, relying on exchange-rate actions, precise disbursements and different modifications within the debt inventory.

Daily Trust reviews that Nigeria’s complete public debt rose to N166.79 trillion as of June 30, 2026, in line with the Debt Management Office (DMO).

The determine confirmed that the nation’s public debt inventory elevated by N7.44 trillion inside three months, rising from N159.35 trillion on the end of March 2026 to N166.79 trillion by the end of June.

The DMO is but to launch determine for the nine-month interval however with growing debt numbers, it’s projected that the debt profile would balloon additional and will hit over N200 trillion by the end of the year if the newest borrowing is added.

In a letter addressed to Senate President Godswill Akpabio on Tuesday, Tinubu requested the early consideration and approval of the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.

The President mentioned the proposed loans have been essential to bridge funding gaps and tackle the nation’s infrastructure deficit, with investments deliberate throughout the 36 states and the Federal Capital Territory.

The tasks are anticipated to cowl energy, transportation, healthcare, training, agriculture, water provide, safety, job creation and monetary administration reforms.

“I submit the attached Federal Government 2026–2027 Supplementary External Borrowing Plan for consideration and early approval of the National Assembly to ensure prompt implementation of our projects,” Tinubu acknowledged within the letter.

He defined that the tasks had undergone technical and financial assessments to make sure that they ship important advantages, notably in poverty discount, expertise acquisition, entrepreneurship and meals safety.

According to him, the size of Nigeria’s infrastructure wants and the monetary sources required to handle them have made further external financing essential.

“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall,” the President mentioned.

The request was offered to the Senate throughout plenary, the place Akpabio noticed that facets of the borrowing framework had featured in earlier authorities borrowing plans.

He subsequently referred the proposal to the Senate Committee on Local and Foreign Debts, chaired by Senator Haruna Manu, for detailed scrutiny.

The committees on Appropriations and Finance, Akpabio acknowledged, would additionally contribute to the legislative evaluate.

Akpabio mentioned the borrowing framework had beforehand obtained consideration within the authorities’s funds and external borrowing plans overlaying 2025 to 2027.

“However, this request will be looked at by the Committee on Local and Foreign Debts,” he mentioned, including that the committee would make clear the scope of the proposal earlier than additional legislative motion.

Daily Trust reviews that the brand new request kinds a part of the borrowing plan to fund the 2026 funds deficit.

In the N68.32 trillion funds authorized for 2026, the deficit stands at N23.85 trillion and it’s anticipated to be funded by way of loans.

However, the proposed borrowing comes amid considerations about Nigeria’s rising debt obligations and the rising value of servicing public debt.

Many specialists have additionally known as for warning over the rising borrowing amidst sustainability considerations.

Speaking on the newest borrowing plan, an economist at Al-Hikmah University, Ilorin, Dr Muhammad Bashir-Yusuf, mentioned borrowing to finance essential infrastructure was a traditional apply, supplied the funds have been used for his or her meant functions.

He mentioned governments resorted to home or external borrowing when their projected expenditure exceeded accessible income.

He added that infrastructure funding was important to enhancing productiveness, attracting traders and increasing the nation’s income base.

“If they are borrowing to finance critical infrastructure, I think every country does that, and that is normal. It is when you have infrastructure that you will be able to generate more revenue,” he mentioned.

Bashir-Yusuf, nevertheless, warned that diverting the funds from the tasks for which they have been obtained would undermine the aim of the borrowing and depart the nation with money owed with out corresponding growth advantages.

“The drawback will now be if they’ve gotten the approval and really gotten the mortgage however refuse to make use of it for what it has been borrowed for.

“Then that will be a problem, because eventually, we will be borrowing for people to invest in, and that will not be good,” he mentioned.

Addressing considerations over Nigeria’s rising public debt regardless of the elimination of the petrol subsidy, the economist mentioned the nation’s complete debt figures included obligations incurred by the Federal Government, state governments and the Federal Capital Territory.

He defined that the funds distributed to state governments have been supplied for underneath the Constitution and weren’t discretionary allocations that the Federal Government might withhold due to political variations.

Bashir-Yusuf mentioned considerations about how the funds have been spent needs to be directed on the respective state governments, whereas the Federal Government needs to be held accountable for its personal expenditure.

He added that the precedence needs to be to make sure that the proposed borrowing translated into tangible infrastructure and financial growth, slightly than permitting the funds to be diverted from their acknowledged functions.

“What concerns us now is to make sure that this money, since we have said they are going to get it, is used for what they have borrowed it for. If they do that, then we will all see the impact in the nearest future,” he submitted.

…Don’t approve the mortgage, Atiku tells NASS

Former Vice-President and African Democratic Congress (ADC) Presidential Candidate, Atiku Abubakar, has mentioned President Bola Tinubu’s request for approval to borrow $20.52 billion and €1.045 billion vindicates his October 12 warning a few mortgage plan of as much as $20 billion.

Atiku mentioned the President’s failure to determine the particular tasks the loans would fund raises severe considerations that borrowed public cash may very well be channelled by way of the Lagos–Calabar Coastal Highway, now rerouted inland, to political campaigners and favoured contractors.

In a press release issued by Phrank Shaibu, Director of Strategic Communication of the ADC Presidential Campaign Council, Atiku mentioned: “On October 12, I warned Nigerians that President Tinubu was reportedly getting ready to borrow as much as $20 billion in reference to the Lagos–Calabar Coastal Highway. I requested him to verify or deny the plan and publish the accounts. He did neither. Today, he has requested the Senate to approve $20.52 billion and €1.045 billion in external loans. My warning has been vindicated.

“The President has listed broad sectors however has not supplied a mission by mission account of what this huge borrowing will fund. Nigerians haven’t been given clear mission particulars, prices, areas or contractors to scrutinise.

“That silence is particularly troubling given the freeway’s inland rerouting. Nigerians have each proper to ask whether or not it’s changing into a pipeline for borrowed cash to succeed in Tinubu’s campaigners and favoured contractors. Barely 12 weeks earlier than an election, how can the President ask lawmakers to saddle Nigerians with greater than $20 billion and €1 billion in debt with out figuring out the tasks and their prices? Is this a growth plan for Nigerians or a marketing campaign financing scheme dressed up as infrastructure?

“You can’t proceed taking frivolous loans on the eve of your departure from workplace. Let it’s on document that one of many first duties I’ll undertake as President is to scrutinise and examine each kobo borrowed, particularly loans taken within the ultimate year of your tenure. Nigerians will ask questions, and we are going to discover the solutions by each lawful means.

“I put native and worldwide lenders on discover: any mortgage granted to this winding down administration should meet all constitutional, statutory and due course of necessities. Upon assumption of workplace, I’ll scrutinise each such mortgage. Any borrowing discovered to have been obtained with out correct authorisation or course of can be challenged and won’t be allowed to face.

“The National Assembly must not approve a single dollar until the President publishes every project, contract, cost, contractor, loan term and repayment obligation. No public money should be borrowed in the dark, and no lawmaker should sign a blank cheque against Nigeria’s future.”

Atiku mentioned the burden was on Tinubu to show that the borrowing would serve the nation, not his political pursuits. He urged lawmakers to publish the proposal and supporting paperwork and topic them to rigorous scrutiny earlier than any resolution.