By Mary Onyia
For the umpteenth time, the administration of Bola Tinubu has approached the National Assembly for approval to secure another external loan, raising fresh concerns over Nigeria’s mounting debt profile. In a letter addressed to Senate President Godswill Akpabio and read during Thursday’s plenary, the president requested approval to borrow $516,333,070 from Deutsche Bank to finance the already approved Sokoto–Badagry Super Highway project. He urged lawmakers to expedite the consideration and passage of the request
The Senate President subsequently referred the request to the Committee on Local and Foreign Debts, directing it to report back within one week. The latest move adds to a growing list of loan approvals sought and obtained by the Tinubu administration since assuming office in 2023, including the approval of an $800 million World Bank facility for palliatives and a broader borrowing plan running into several billions of dollars aimed at infrastructure, budget support, and economic
Nigeria’s public debt has continued to climb sharply, crossing ₦97 trillion (about $108 billion) by late 2023 and projected to rise further following subsequent borrowings and exchange rate adjustments. Analysts warn that the country now spends a significant portion of its revenue—often over 90 percent—on debt servicing, leaving little fiscal space for capital development and social investment.
The implications are increasingly stark: higher debt servicing costs, pressure on the naira, reduced investor confidence, and a growing burden on future generations. While the government argues that borrowing is necessary to bridge infrastructure gaps and stimulate growth, critics caution that without corresponding revenue expansion and transparency in utilisation, Nigeria risks sliding deeper into a debt trap with long-term economic consequences.
Meanwhile, former Vice President Atiku Abubakar, reacting, has criticised the move, warning against what he described as indiscriminate borrowing. In a statement by his aide, Phrank Shaibu, Atiku acknowledged the importance of infrastructure development, particularly a project linking the Northwest and Southwest, but cautioned against what he termed “reckless fiscal decisions.” He stressed that “at a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan — without transparent terms, clear cost-benefit analysis, and a credible repayment framework — raises profound questions about prudence and accountability.”