In what many analysts describe as a defining moment in Nigeria’s debt narrative, both chambers of the National Assembly have approved President Bola Ahmed Tinubu’s request to implement a $2.347 billion external borrowing plan contained in the 2025 Appropriation Act, signaling yet another chapter in the nation’s deepening reliance on foreign loans.
The Senate and the House of Representatives also approved the issuance of a $500 million debut sovereign Sukuk in the international capital market, the first of its kind in Nigeria’s external debt profile. The Sukuk, a Sharia-compliant financing instrument, is expected to fund priority infrastructure projects across key sectors such as transportation, power, and housing.
According to the government, proceeds from the $2.347 billion loan will be partly used to refinance maturing Eurobonds and finance selected developmental projects across the federation.
How the Approval Was Sealed
The Senate’s decision followed the adoption of the report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts. Similarly, the House of Representatives adopted the report of its Committee on Loans and Debt Management, chaired by Hon. Hassan Nalaraba.
President Tinubu’s borrowing request was first read on the Senate floor on October 8, 2025, outlining plans for new foreign borrowings to meet financing gaps in the 2025 fiscal year. Both legislative chambers moved swiftly to grant approval following committee reviews, which highlighted the country’s pressing need for external financing.
While supporters of the borrowing plan argue that the loans are essential for sustaining public infrastructure, cushioning fiscal deficits, and stabilizing the exchange rate, critics have voiced strong concerns over the nation’s rising debt load and dwindling capacity to repay.
Nigeria’s Debt Clock Ticking Faster
Nigeria’s public debt has continued its alarming upward trajectory, recently surpassing ₦100 trillion according to data from the Debt Management Office (DMO). With this latest approval, analysts warn that the country’s debt-to-GDP ratio, though currently below the international benchmark, could become unsustainable given the government’s high debt service-to-revenue ratio — now exceeding 70%.
Economists say the new loans could further strain the economy if not tied to productive investments. “Refinancing Eurobonds with new borrowings simply postpones the inevitable,” noted Celestine Ukpong, a Lagos-based economist and investor. “Nigeria needs to grow its export base and generate domestic revenue rather than recycling debt.”
Similarly, Peter Adebayo, a chartered accountant, cautioned that while the Sukuk issuance may appear innovative, its success depends on transparency and accountability. “Sukuk bonds can fund infrastructure effectively, but only if every dollar borrowed translates into visible public assets. Otherwise, it’s just another loan dressed in Islamic finance clothing,” he said.
A Flashback of Borrowing Without Breaks
Nigeria’s debt journey has been a long and bumpy ride. From the Paris Club debt relief of 2005 to the series of Eurobond issuances under former President Muhammadu Buhari, and now the debut international Sukuk under President Tinubu, the borrowing trend has shown no signs of abating.
Each borrowing phase has been justified as a necessary step toward economic stability and development. However, citizens often question why infrastructure remains underdeveloped, unemployment remains high, and inflation continues to erode purchasing power despite successive administrations’ access to foreign credit.
The growing public frustration is captured in the increasingly popular phrase, “Borrow till we die,” reflecting a widespread sentiment that Nigeria’s fiscal future is being mortgaged through endless debt accumulation.
The Big Question: Is There a Way Out?
Experts agree that while borrowing is not inherently bad, its sustainability depends on how effectively the funds are managed. Transparency, project monitoring, and debt accountability are key to ensuring that loans translate into tangible national benefits rather than deepening fiscal dependence.
Fiscal policy experts suggest that Nigeria must refocus on non-oil revenue diversification, public-private partnerships (PPPs), and export-led growth strategies to reduce the need for foreign loans.
As Nigeria moves into 2026, the burden of repayment looms large. The country’s ability to convert borrowed funds into economic value will determine whether this new borrowing plan becomes a turning point or yet another chapter in the “borrow till we die” saga.
For now, the approval stands, and so does the debt.
Nigeria’s National Assembly has approved President Bola Tinubu’s $2.347 billion external borrowing plan and a $500 million sovereign Sukuk to fund infrastructure and refinance Eurobonds, raising fresh concerns over the nation’s growing ₦100 trillion debt burden and long-term fiscal sustainability.
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