President Bola Tinubu has asked the National Assembly to approve the Federal Government’s 2026–2027 supplementary external borrowing plan, valued at $20.5 billion and €1.45 billion.
The proposed borrowing is intended to finance critical infrastructure, agriculture, education and other key sectors of the economy in line with the administration’s development priorities.
The request comes amid growing debate over the government’s borrowing strategy and Nigeria’s rising debt burden.
In April, the Federal Government increased its planned borrowing for 2026 by ₦11.31 trillion, bringing the total to ₦29.20 trillion. It also projected a fiscal deficit of ₦31.46 trillion and debt-servicing costs of ₦15.81 trillion, according to a previous report by Channels Television.
The administration has faced criticism over its continued reliance on borrowing despite the removal of the petrol subsidy, which was expected to free up resources for development.
Peter Obi, the Nigeria Democratic Congress (NDC) presidential candidate, warned in April that Nigeria was heading towards a debt crisis. He questioned the government’s borrowing despite the subsidy removal and raised concerns about outstanding payments to contractors and the implementation of capital projects.
The Emir of Kano, Muhammadu Sanusi II, also questioned the government’s continued borrowing after the removal of fuel subsidies, arguing that Nigerians should see the benefits of the policy through improved public finances.
However, the Federal Government has defended its borrowing strategy, maintaining that the funds are intended to support critical infrastructure and other development priorities.
In July, Finance Minister Taiwo Oyedele rejected claims that the Tinubu administration had borrowed about ₦80 trillion in three years. He explained that the increase in the reported debt stock included the effects of naira depreciation on external debt and the recognition of existing obligations, rather than fresh borrowing alone.
The National Assembly had previously approved a $2.347 billion external borrowing request in October 2025 to partly finance the 2025 budget deficit and refinance maturing Eurobonds. The approval also included a proposed $500 million sovereign sukuk for infrastructure projects.
While some economists argue that borrowing can support development and poverty alleviation when channelled into productive investments, concerns persist over debt-servicing costs, transparency and whether the loans will deliver tangible benefits to Nigerians.
