By George Ozalla
The National Assembly has approved President Bola Tinubu’s request to secure fresh external borrowing of about $6 billion, clearing the path for the Federal Government to access new financing facilities aimed at infrastructure development, budget support, and key economic interventions.
The approval was granted on Tuesday during plenary sessions of both the Senate and the House of Representatives in Abuja, following the consideration and adoption of the report of the Committees on Local and Foreign Debt.
The borrowing package is made up of multiple components, including a $5 billion structured financing arrangement reportedly backed by First Abu Dhabi Bank of the United Arab Emirates, and an additional $1 billion facility expected from UK Export Finance. The funds are to be deployed to major infrastructure projects, including transport corridors, port rehabilitation, energy infrastructure, and other capital-intensive national programmes.
Lawmakers said the approval was in line with the Federal Government’s 2026 fiscal framework, which prioritises closing funding gaps in the national budget while sustaining ongoing capital projects across critical sectors of the economy.
The latest borrowing forms part of a broader external financing programme that has remained central to Nigeria’s fiscal strategy since the Tinubu administration assumed office in May 2023.
Data from the Debt Management Office and budget implementation records show that Nigeria’s total public debt stock has continued to rise sharply in recent years. As of mid-2023, total public debt stood at about ₦87 trillion. By 2025, it had climbed above ₦121 trillion, driven by new borrowings, exchange rate depreciation, and persistent fiscal deficits.
External debt now accounts for a significant share of the country’s obligations, estimated at over $45 billion, while domestic debt remains the larger component of the overall debt profile. The rising debt stock has been compounded by repeated borrowing to finance budget deficits and refinance maturing obligations.
Debt servicing has also become one of the most pressing pressures on public finances. Federal expenditure records show that a substantial portion of annual revenue is now committed to debt repayment, in some fiscal projections exceeding 60 percent of federally generated income, leaving limited fiscal space for capital projects, social investment, and economic expansion.
The Tinubu administration has consistently defended its borrowing approach, insisting that most of the loans are tied to productive infrastructure projects designed to stimulate long-term growth, improve revenue generation capacity, and strengthen economic resilience.
However, economists and fiscal analysts continue to warn that Nigeria’s rising debt burden, combined with high global interest rates, currency volatility, and weak revenue performance, could place additional strain on public finances if structural revenue reforms do not keep pace with borrowing levels.
