President Bola Ahmed Tinubu has formally requested the approval of the Senate for a fresh $516.33 million external loan, adding to Nigeria’s growing debt stock amid heightened fiscal concerns.
The request, contained in a letter addressed to Senate President Godswill Akpabio and read during plenary on Thursday, indicates that the facility will be sourced from Deutsche Bank. The funds are earmarked for the Sokoto–Badagry Super Highway project, which forms part of the Federal Government’s previously approved borrowing plan.
Tinubu, in the correspondence, urged lawmakers to expedite legislative consideration of the request. The Senate President subsequently referred the matter to the Committee on Local and Foreign Debts, mandating it to report back within one week.
The proposed borrowing comes at a time the Federal Government is also intensifying its domestic debt issuance, even as it attempts to moderate the pace of monthly borrowings. Data from the Debt Management Office show that the government plans to raise N700 billion through an April 2026 bond auction.
The issuance – scheduled for April 27 with settlement on April 29 – will involve the re-opening of existing bonds across three maturities: 2030, 2032, and 2035. Specifically, the offer comprises N300 billion of the 17.945 per cent FGN August 2030 bond, N100 billion of the 17.95 per cent FGN June 2032 bond, and N300 billion of the 22.60 per cent FGN January 2035 bond.
Although the April figure represents a decline from N900 billion in January and N750 billion in March, analysts say the adjustment reflects a gradual calibration rather than a significant reduction in borrowing needs.
The relatively high yields – approaching 23 per cent on long-term instruments – underscore the tight monetary environment driven by persistent inflation and policy tightening by the Central Bank. This has continued to raise the cost of domestic borrowing and compound fiscal pressures.
Nigeria’s debt servicing obligations have risen sharply, reaching about N16 trillion in 2025, compared to N13.02 trillion in 2024. With total public debt estimated at N159.28 trillion as of December 2025 and expected to climb beyond N170 trillion, concerns are intensifying over the sustainability of the country’s debt profile.
Economists warn that the increasing share of revenue devoted to servicing debt could constrain government spending on critical infrastructure and social services, even as authorities continue to rely on both external and domestic borrowing to finance budget deficits.