Tinubu Seeks NASS Approval for $21.5m, ¥15bn Loans, €65m Grant for Economic Interventions
President Bola Ahmed Tinubu has asked the National Assembly to approve his administration’s plan to borrow $21.5 million and ¥15 billion, alongside a €65 million grant, as part of Nigeria’s 2025–2026 external borrowing strategy.
The request, conveyed in a formal letter, was read by Senate President Godswill Akpabio during Tuesday’s plenary session.
According to the letter, the proposed loans and grant will fund projects aimed at creating jobs, advancing skill acquisition, promoting entrepreneurship, reducing poverty, and improving national food security. President Tinubu emphasized that the programmes are designed to have a broad national reach, covering all 36 states and the Federal Capital Territory (FCT).
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Following the presentation, Mr. Akpabio directed the Senate Committee on Local and Foreign Debt to scrutinize the request and submit its report within two weeks.
The president’s fresh loan proposal comes amid growing concerns over Nigeria’s rising debt profile. As of December 31, 2024, the country’s total public debt stood at N144.7 trillion (approximately $94.2 billion), according to the Debt Management Office (DMO). Of that amount, domestic debt accounted for 51.4 percent (N74.4 trillion), while external debt made up 48.6 percent (N70.3 trillion).
The cost of servicing this debt has surged dramatically. In 2023, Nigeria spent N7.8 trillion on debt servicing—a 121 percent rise from N3.52 trillion in 2022. That figure ballooned further to N13.12 trillion in 2024, reflecting a 68 percent increase. Analysts warn that the escalating debt servicing burden is draining funds from critical sectors like infrastructure, education, and healthcare, thereby slowing national development.
More details are expected as the Senate committee begins its review.
By PRNigeria
