Tinubu Seeks Senate Approval for Fresh $7.7 Billion Loan as Nigeria’s Debt Burden Rises

President Bola Ahmed Tinubu has asked the National Assembly to approve a new external borrowing plan of $7.7 billion, approximately ₦10.79 trillion, to help finance the 2026 budget deficit. The request has renewed debate about Nigeria’s debt and whether borrowing can deliver meaningful development.

The proposal followed the President’s withdrawal of an earlier request to process external loans of $20.52 billion and €1.045 billion. The revised $7.7 billion request replaces that proposal; it is not an additional loan. The Senate has referred it to relevant committees for scrutiny. It has not been finally approved.

According to the President’s communication, the 2026 budget provides for ₦29.2 trillion in new borrowing: ₦18.4 trillion domestically and ₦10.79 trillion externally. This would help cover a projected deficit of about ₦31.4 trillion. The government says the external financing will support infrastructure, defence, agriculture, healthcare, electricity and education.

How Much Does Nigeria Owe So Far?

The latest official figures from the Debt Management Office put Nigeria’s total public debt at ₦166.79 trillion as of June 30, 2026, or about $120.93 billion. In June 2023, shortly after Tinubu took office, the figure was ₦87.38 trillion. The nominal increase is approximately ₦79.41 trillion.

That increase is not entirely new borrowing by Tinubu. The debt stock includes inherited obligations, while exchange-rate changes raise the naira value of foreign-currency debt. It also includes ₦22.71 trillion in Ways and Means advances accumulated before his administration and formally incorporated into the debt stock in 2023. External debt rose from about $43.16 billion in June 2023 to $54.52 billion in June 2026, an increase of roughly $11.36 billion.

Implications for Nigerians

More borrowing means future budgets must provide for interest and repayment. Higher debt-service costs can leave less money for hospitals, schools, roads, electricity, security and social support. Foreign-currency loans expose public finances to exchange-rate movements and refinancing risks.

Borrowing can benefit the country when it finances productive projects that create jobs, revenue and economic growth. But poorly managed projects can leave citizens with repayment obligations without delivering comparable value.

Government and Citizens React

The Presidency has defended borrowing as necessary to fund development and strengthen productive capacity. Tinubu has argued that the important question is what the country builds and the value created from borrowed funds.

Opposition figures have demanded transparency. Former Vice-President Atiku Abubakar urged lawmakers to reject the request unless the government provides a project list, loan conditions and a credible repayment plan. The Nigeria Democratic Congress warned that excessive borrowing could burden future generations.

Public reactions reflect concern about living costs and whether previous loans have improved daily life. Citizens want clear explanations of how borrowed money is spent and what benefits it delivers.

What Happens Next?

Senate committees must examine the amount, interest, tenure, lenders, projects and repayment capacity before lawmakers decide. Nigerians should demand reports showing where borrowed funds go and what results they deliver. Responsible borrowing requires transparency, measurable outcomes and accountability.