The recent loan request of $24.14bn transmitted to the national assembly for approval by President Bola Tinubu now sets the country’s public debt at N182.91tn by 2026. The Group Chief Executive Officer of Cowry Assets Management Limited, Johnson Chukwu, expressed reservations about the Federal Government’s planned $24.14bn foreign borrowing, stressing the need for transparency and efficiency in its utilisation.
According to data from the Debt Management Office, the prevailing official exchange rate of N1,583.74/$1, and proposed borrowing would add N38.24tn to the existing debt stock, pushing the country’s total public debt from N144.67tn at the end of 2024 to over N182.91tn by 2026.
This represents a 48.58 per cent rise from the N97.34tn recorded at the end of 2023. The jump was driven by substantial increases in both domestic and external borrowings and compounded by the depreciation of the naira against major foreign currencies.The proposed borrowing also represents a substantial increase relative to the Federal Government’s current indebtedness. As of December 2024, the Federal Government’s total debt stood at N133.33tn comprising N70.41tn in domestic debt and N62.92tn in external debt.
The additional N38.24tn would increase this figure by 28.68 per cent. When compared to the total national debt of N144.67tn, the new loans represent a 26.43 per cent increase.
In a letter to the House of Representatives, President Tinubu explained that the external borrowing plan forms part of the 2025–2026 rolling borrowing programme and is aimed at supporting key sectors, including infrastructure, agriculture, healthcare, education, water resources, security, and public finance reforms.
Economists have raised concerns about the debt sustainability, stressing the need to put the borrowing to good use.
