President Bola Tinubu has asked the National Assembly to approve a supplementary external borrowing plan worth $20.5bn and €1.45bn for the 2026 and 2027 fiscal years.
The proposed loans are expected to fund critical infrastructure, agriculture, education and other key sectors of the economy, in line with the Federal Government’s development priorities.
According to a report by Channels Television on Tuesday, October 27, 2026, the request comes amid growing concerns over Nigeria’s rising debt profile and the administration’s continued reliance on borrowing.
Nigeria’s Borrowing Plan Raises Concerns
In April 2026, the Federal Government increased its planned borrowing for the year by ₦11.31tn, bringing the total to ₦29.20tn.
Channels Television reported that the government had projected a fiscal deficit of ₦31.46tn and debt-servicing costs of ₦15.81tn for the year.
The continued borrowing has attracted criticism, particularly following the removal of the petrol subsidy, a policy expected to free up government resources for other priorities.
In April, former presidential candidate Peter Obi warned that Nigeria was heading towards a debt crisis, questioning the government’s continued borrowing despite the subsidy removal.
Obi also expressed concern over outstanding payments to contractors and the implementation of capital projects.
The Emir of Kano, Muhammadu Sanusi II, similarly questioned the need for continued borrowing after the government ended petrol subsidy payments. He argued that Nigerians should see the benefits of the policy through improvements in public finances.
Federal Government Defends Debt Figures
The Federal Government has maintained that borrowing is necessary to finance infrastructure and other development projects.
In July, Finance Minister Taiwo Oyedele rejected claims that the Tinubu administration had borrowed about ₦80tn in three years.
Oyedele explained that the increase in Nigeria’s reported debt stock reflected not only fresh borrowing but also the impact of naira depreciation on external debt and the recognition of existing obligations.
Previous External Loan Approval
The National Assembly approved a $2.347bn external borrowing request in October 2025 to help finance the 2025 budget deficit and refinance maturing Eurobonds.
The approval also included a proposed $500m sovereign sukuk for infrastructure projects.
While some economists argue that borrowing can support economic development and poverty reduction when invested in productive sectors, concerns persist over debt-servicing costs, transparency and the effectiveness of government spending.
The latest request will require legislative approval before the proposed supplementary external borrowing plan can proceed.
