President Bola Tinubu has requested the approval of the National Assembly for fresh external borrowings totaling $21.54 billion and ¥15 billion (Japanese Yen), as part of the Federal Government’s external borrowing plan for the 2025–2026 fiscal period.
In a communication addressed to both chambers of the legislature, President Tinubu explained that the proposed loans are intended to finance key projects across multiple sectors, with priority areas including infrastructure, agriculture, health, education, water supply, security, and employment generation.
Additionally, the president is seeking the approval of an extra €2.19 billion and a €65 million grant from international development partners and donor agencies.
According to Tinubu, the loan requests are crucial in addressing Nigeria’s significant infrastructure deficits and boosting economic growth, especially in the wake of fuel subsidy removal and its economic implications.
He stressed that with dwindling domestic revenues, prudent external borrowing has become necessary to bridge critical funding gaps.
He added that the projects and programs were selected following comprehensive technical and economic evaluations, and are expected to drive socioeconomic development, create jobs, promote entrepreneurship, enhance food security, and ultimately improve the standard of living for Nigerians.
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He added that most of the proposed projects, will be implemented across all 36 states and the Federal Capital Territory.
President Tinubu further emphasized the urgent need to obtain legislative approval to ensure timely disbursement of funds and effective implementation of the projects.
As of September 2024, Nigeria’s public debt stood at N142.3 trillion,
With the approval of this new borrowing plan, the national debt could rise to N190 trillion by the end of 2025.
(Editor: Oloyede Oworu)
