Nigeria's debt appetite shows no signs of slowing as President Bola Tinubu requests $21.5 billion in new external borrowing, despite mounting warnings from the International Monetary Fund and financial analysts. Leadership Newspaper reports that, combined with domestic borrowing plans, Nigeria seeks nearly $26 billion in new loans, even as current debt service costs consume billions of dollars annually.
This aggressive borrowing strategy reveals a dangerous dependency that threatens Nigeria's long-term fiscal sovereignty.
Key Takeaways
- Tinubu administration seeks $21.5 billion external plus $4.5 billion domestic borrowing for 2025-2026
- Roughly 60% of the proposed 2025 budget spending would be financed through new borrowings
- Nigeria's public debt stands at $94.23 billion as of December 2024
- External debt servicing hit $4.66 billion in 2024 alone—$2.8 billion principal, $1.74 billion interest
- IMF warns global debt could reach 100% of GDP by 2030 if unchecked
- Cowry Asset Management flags "concerning shift" from earlier promises to reduce debt dependence
How has Nigeria's debt burden affected public services in your community? What revenue alternatives should the government prioritise over borrowing?
