President Bola Tinubu’s request for fresh external loans has sparked renewed concerns about Nigeria’s growing debt burden, with opposition figures demanding greater transparency over previous borrowings and the projects financed.
The President is seeking National Assembly approval for $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
While the Federal Government maintains that the loans will finance infrastructure and stimulate economic growth, critics are questioning whether Nigeria can sustain additional debt without clear evidence of returns from previous borrowing.
How Much More Debt Can Nigeria Carry?
Dr. Chiogo Constance Ikokwu, spokesperson for the National Democratic Congress (NDC) National Presidential Campaign Council, raised concerns about the country’s debt trajectory in a statement issued on Thursday, October 29, 2026.
Ikokwu questioned the government’s decision to seek further loans while Nigerians continue to face economic difficulties and concerns persist over the delivery of previously funded projects.
She cited figures showing that Nigeria’s external debt increased from $43.16 billion in June 2023 to $54.52 billion in June 2026, representing an increase of approximately 26.3%.
She also pointed to the rise in total public debt from ₦87.38 trillion to ₦166.79 trillion over the same period.
According to Ikokwu, the National Assembly should demand evidence of how previous loans have improved roads, healthcare, electricity supply and other essential public services before approving additional borrowing.
Nigeria’s Public Debt Reaches ₦166.79tn
Data published by the Debt Management Office (DMO) show that Nigeria’s total public debt reached ₦166.79 trillion as of June 30, 2026.
The figure comprised approximately ₦91.59 trillion in domestic debt and ₦75.20 trillion in external debt.
In dollar terms, Nigeria’s external debt stood at approximately $54.52 billion.
Ikokwu also presented an illustrative estimate suggesting that Nigeria’s potential external debt exposure could approach $81.96 billion if the proposed loans and previously approved but undrawn facilities were fully utilised.
However, this projection is not Nigeria’s official outstanding debt. It depends on assumptions about future disbursements and possible overlaps between borrowing facilities.
Tinubu Defends Borrowing for Infrastructure
President Tinubu has defended his administration’s borrowing strategy, arguing that investment in infrastructure is necessary to expand economic activity and support Nigeria’s ambition of becoming a $1 trillion economy by 2030.
The government says the proposed loans will support projects in transportation, electricity, agriculture, healthcare, education, water supply and security.
Tinubu maintains that borrowing should be evaluated by the economic value generated through infrastructure development, employment opportunities and increased productivity.
However, the government’s position has not ended concerns about how previous loans have been utilised.
Opposition Demands Transparency Over Previous Loans
Ikokwu called on the Federal Government to publish a comprehensive register of external loans obtained since May 2023.
She wants the register to disclose the amounts borrowed and disbursed, repayment terms, project locations, implementation progress and independently verified outcomes.
Her concerns have also been echoed by other political figures.
Senator Victor Umeh questioned why contractors working on government projects continue to report unpaid obligations despite previous borrowing approvals.
Former Vice President Atiku Abubakar has similarly demanded greater disclosure of the projects to be financed under the latest borrowing proposal.
The concerns centre on whether additional debt will translate into measurable economic improvements.
Can Nigeria Afford More Borrowing?
Economists generally assess debt sustainability by considering repayment obligations, government revenue, borrowing costs, exchange-rate exposure and the economic returns generated by investments.
For Nigeria, the debate extends beyond the size of the proposed loans.
Questions remain about the affordability of future repayments, the transparency of project selection and whether infrastructure investments will deliver measurable improvements in citizens’ living conditions.
The National Assembly is expected to scrutinise the proposed borrowing plan before deciding whether to grant approval.
For now, the central issue remains whether the government can demonstrate that further borrowing will produce sufficient economic benefits to justify its long-term financial obligations.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
