Stephen Ukandu, Umuahia
President Bola Tinubu has approached the Senate for approval of a fresh $516.3 million external loan, further adding to Nigeria’s rising debt profile.
The request, contained in a letter addressed to Senate President Godswill Akpabio and read during Thursday’s plenary, seeks legislative backing to secure the facility from Deutsche Bank for the Sokoto–Badagry 1,000km Super Highway project.
The proposed loan is part of the Federal Government’s already approved medium-term borrowing plan, with Tinubu urging lawmakers to grant expeditious approval.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
The development comes amid a wave of recent borrowing initiatives by the Tinubu administration, raising fresh concerns over Nigeria’s growing debt burden.
Critics wonder why the Federal Government has continued in its borrowing spree despite claims that it is making more revenue.
According to official data, Nigeria’s total public debt stood at about ₦159.27 trillion ($110.3 billion) as of December 2025, marking a steady rise in recent years.
External debt alone accounted for roughly ₦74.43 trillion (46.7%), highlighting increased reliance on foreign financing.
In the past few months, the National Assembly has already approved a $6 billion external borrowing request to fund key infrastructure and budgetary needs.
Similarly, Nigeria raised about $747 million in syndicated loans in 2025 for coastal highway projects, also led by Deutsche Bank.
The government’s broader borrowing plan is even more ambitious, with projections indicating over $21 billion in external loans for the 2025–2026 fiscal cycle to support infrastructure,
Analysts warn that if current borrowing trends persist, Nigeria’s total debt could climb toward ₦195 trillion by 2026, although authorities insist the loans are targeted at growth-enhancing projects.
President Tinubu has consistently defended the borrowing strategy, noting that the funds are tied to critical infrastructure such as highways, ports, and energy projects aimed at boosting trade, reducing logistics costs, and stimulating economic growth.
The proposed Sokoto–Badagry Super Highway, a flagship project of the administration, is expected to link Nigeria’s North-West to the South-West, enhancing national connectivity and commercial activity.
However, with debt servicing already projected to consume a significant portion of government revenue, fiscal experts continue to urge caution to ensure sustainability and avoid future debt distress.
Meanwhile, public outcry has trailed Federal Government’s failure to fix the Eastern rail corridor as the entire South-East geopolitical zone has remained without a functional railway since 2015 when the All Progressives Congress, APC, came to power.
Many federal roads in the zone have remained in deplorable condition despite promises by the Federal Government to rebuild them.
