President Bola Tinubu has approached the National Assembly for approval to secure external loans worth approximately $20.52 billion and €1.045 billion to finance projects and programmes across key sectors of Nigeria’s economy.
The proposed borrowing plan is expected to support investments in infrastructure, agriculture, healthcare, education, water supply, security, job creation and public financial management reforms.
The request places renewed attention on the Federal Government’s borrowing strategy and its efforts to fund development projects amid growing concerns about Nigeria’s debt burden and the cost of servicing existing obligations.
Reacting to the proposal, former Vice President Atiku Abubakar said the request vindicated his earlier warnings about the government’s borrowing plans, which he had linked to loans potentially reaching $20 billion. He also raised concerns about the possible diversion of public resources for political purposes.
The proposed external borrowing will require legislative scrutiny and approval before the government can proceed with the relevant financing arrangements. Lawmakers are expected to examine the terms of the loans, their intended uses and the implications for the country’s fiscal position.
In a related development, the Federal Government is seeking approval from the House of Representatives to settle outstanding liabilities totalling ₦269.4 billion through the issuance of promissory notes.
The government has warned that further delays in settling the obligations could attract additional interest charges and penalties, potentially increasing the financial burden on public funds.
The two proposals come as Nigeria continues to balance its infrastructure and development needs against mounting debt-servicing obligations and pressure to maintain fiscal stability.