Nigeria’s Public Debt Soars Past N180 Trillion as Tinubu Seeks New Loans.

Nigeria’s public debt is set to reach new heights, crossing the N180 trillion mark, after President Bola Tinubu asked the National Assembly to approve additional loans worth over N34 trillion. This move has sparked serious debate among Nigerians, with many experts and citizens worried about how the country will manage such a huge debt and what it means for future generations.

Why Is Nigeria’s Public Debt Rising?

President Tinubu’s latest request includes a plan to borrow more than $21.5 billion from foreign lenders, which is about N33.39 trillion at the current exchange rate. He is also seeking approval to issue domestic bonds worth N757.9 billion to settle outstanding pension payments for retired workers.

In his letters to the Senate and House of Representatives, Tinubu explained that these loans are part of the 2025–2026 borrowing plan. He said the money would be used for important projects in areas like infrastructure, agriculture, health, education, water supply, security, and job creation.

According to him;

“The 2025–2026 borrowing plan covers all sectors, with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, security, and employment generation, as well as financial and monetary reforms, among others.”

Tinubu stressed that Nigeria’s public debt has grown because the country needs to fill a big gap in infrastructure and faces declining government revenue, especially after the removal of fuel subsidies. He said borrowing is now “essential to close the financial shortfall” and to keep the country moving forward.

How Much Is Nigeria Owing?

By the end of 2024, Nigeria’s total public debt stood at N144.67 trillion, according to the Debt Management Office. With the new loans, experts say the debt will climb to over N180 trillion by 2026, and some projections even put it as high as N187.8 trillion if borrowing continues at this pace. This is a huge jump from N97.34 trillion in 2023, meaning the country’s debt has almost doubled in just two years.

What Will the New Loans Be Used For?

President Tinubu said the loans are tied to projects that have been carefully checked for their economic benefits. The main focus is on building roads, railways, hospitals, schools, and improving water supply. The government also wants to use part of the money to pay back pension arrears, which have caused hardship for many retired workers.

Rising Costs of Debt

A major worry about Nigeria’s public debt is the cost of paying it back. In the first two months of 2025 alone, the government spent N1.399 trillion just on debt service—money used to pay interest and repayments. This was 25% higher than the same period in 2024. At the same time, government revenue only grew by 13%, reaching N1.067 trillion.

This means Nigeria’s debt service-to-revenue ratio—a measure of how much of the country’s income goes to paying debt—has worsened. In early 2025, it stood at 131%, up from 118% a year earlier. In simple terms, Nigeria is now spending more on debt than it is earning, which is not sustainable for any country.

What Are Experts Saying?

Financial experts and economists are raising alarms about Nigeria’s public debt. Some say the amount of new loans is too large and warn that the country may struggle to pay back what it owes, especially if the naira loses value or if government revenue does not improve.

Tunde Abidoye, Head of Equity Research at FBNQuest Merchant Bank, warned:

“I believe some caution is warranted, given the potential rise in debt service cost, and the inherent exchange rate risks associated with foreign denominated borrowings. This also has implications for the fiscal space.”

Olatunde Amolegbe, former President of the Chartered Institute of Stockbrokers, added:

“Borrowing in itself is not a problem as long as the capacity to meet up with repayment obligations, as at when due, is there. It is, however, important that we pay particular attention to application and usage of the loans.”

Other analysts, like Clifford Egbomeade, say that if the loans are used wisely and tied to real reforms and productive projects, they could help the economy grow. But they also warn that Nigeria’s debt is already very high, and the cost of paying it back takes up a big share of government revenue.

What Are the Risks of Nigeria’s Public Debt?

1. Debt Trap: If Nigeria borrows too much, it may end up using most of its income just to pay back loans, leaving little for health, education, or development.
2. Exchange Rate Risk: Many loans are in dollars or other foreign currencies. If the naira gets weaker, it will cost even more to pay back the debt.
3. Less Money for Services: As more money goes to debt, less is left for important things like schools, hospitals, and roads.
4. Higher Borrowing Costs: If lenders see Nigeria as a bigger risk, they may demand higher interest rates, making future borrowing even more expensive.

What Is the Government Doing About Nigeria’s Public Debt?

President Tinubu has promised that the new loans will be used wisely and that his administration is committed to transparency and accountability. He says the projects have been carefully chosen and will benefit all 36 states and the Federal Capital Territory.

The government is also working to improve revenue collection, fight waste, and manage public finances better. Tinubu has asked the National Assembly to approve the loans quickly so that work on the projects can start without delay.

Can Borrowing Help Nigeria Grow?

Some experts say that borrowing is not always bad if the money is used to build things that help the economy grow, like roads, power plants, and schools. If these projects create jobs and boost business, the country can earn more money and pay back the loans. But if the money is wasted or stolen, the debt becomes a heavy burden with no benefits for ordinary Nigerians.

What Should Nigeria Do Next?

To manage Nigeria’s public debt and avoid a crisis, experts recommend:

• Using borrowed money only for projects that will grow the economy and create jobs.
• Improving tax collection and finding new ways to raise government revenue.
• Cutting wasteful government spending and fighting corruption.
• Being open and honest about how loans are used and reporting progress regularly.
• Avoiding borrowing for things that do not bring long-term benefits.

Final Thoughts on Nigeria’s Public Debt

Nigeria’s public debt is now higher than ever before, and the country faces tough choices about how to manage it. While President Tinubu says the new loans are needed to build a better future, many Nigerians are worried about the risks and the growing cost of paying back what is owed.

The real test will be whether the borrowed money is used wisely and whether the government can grow the economy fast enough to pay back the loans without hurting ordinary people. As Nigeria’s public debt continues to rise, the decisions made today will shape the country’s future for many years to come.

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