Debt binge hits staggering new high

President Tinubu secures approval for massive new foreign and domestic loans to fund Nigeria's 2025 budget, raising debt concerns.

Nigeria’s borrowing spree deepened this week as President Bola Tinubu secured parliamentary approval for $2.35 billion in new external loans and a $500 million debut sovereign sukuk to fund the 2025 budget deficit. The National Assembly also received a fresh request from the president to authorise an additional ₦1.15 trillion in domestic borrowing after lawmakers raised total spending to ₦59.9 trillion, widening the deficit to ₦14 trillion. According to the approved plan, external funds will be sourced through eurobonds, syndicated loans, or bridge facilities, while proceeds from the sukuk will partly finance infrastructure and refinance high-cost debt. The combined borrowing package brings total loans for 2025 to nearly ₦14.1 trillion, equivalent to 24 percent of total expenditure. Tinubu’s government has defended the move as necessary to sustain public spending and stabilise the economy, but analysts warn that the strategy further expands Nigeria’s already heavy debt burden and limits fiscal flexibility in the medium term.