Nigeria’s Public Debt Projected to Surpass ₦180 Trillion Amid New Loan Requests
Nigeria’s public debt is projected to exceed ₦180 trillion following President Bola Tinubu’s recent request to the National Assembly for approval of additional loans totaling ₦34.15 trillion. This request comprises an external borrowing plan of over $21.5 billion (approximately ₦33.39 trillion at the official exchange rate of ₦1,590 per dollar) and a domestic bond issuance of ₦757.9 billion aimed at settling outstanding pension liabilities.
In his letters to both chambers of the National Assembly, President Tinubu emphasized that the proposed 2025–2026 borrowing plan targets critical sectors such as infrastructure, agriculture, health, education, water supply, security, and employment generation. He highlighted the necessity of these loans in light of the significant infrastructure deficit and the financial constraints resulting from the removal of fuel subsidies.
As of the end of 2024, Nigeria’s total public debt stood at ₦144.66 trillion, marking a 48.6% increase from ₦97.34 trillion in 2023. The Federal Government accounted for 95% of this debt, amounting to ₦137.28 trillion. The additional borrowing, combined with ₦10.85 trillion borrowed from domestic investors between January and April 2025, is expected to push the total public debt beyond ₦180 trillion.
Financial analysts have raised concerns about the sustainability of Nigeria’s debt trajectory. Afrinvest, a financial advisory firm, warned that the country’s total public debt could reach ₦180 trillion by the end of 2025 if current fiscal policies persist. The firm cited factors such as weak oil production—averaging 1.49 million barrels per day, below the 2.06 million barrels per day benchmark—and lower oil prices averaging $64 per barrel, compared to the $75 per barrel benchmark. These factors contribute to a potential 37.9% revenue shortfall from the projected ₦19.5 trillion in oil income.
The rising debt levels have also led to increased debt servicing obligations. Projections indicate that debt service payments could reach ₦15.81 trillion in 2025, necessitating innovative strategies to ensure fiscal sustainability.
In response to these challenges, the National Assembly has referred President Tinubu’s loan requests to relevant committees for further legislative action. The administration has pledged transparency and accountability in managing the nation’s debt and implementing the proposed borrowing plan.
Vanguard News
As Nigeria navigates these fiscal challenges, stakeholders emphasize the importance of prudent economic management, diversification of revenue sources, and effective implementation of reforms to ensure long-term economic stability.
