President Bola Tinubu has asked the National Assembly to approve the Federal Government’s 2026 to 2027 supplementary external borrowing plan, valued at 20.5 billion dollars and 1.45 billion euros. 

The proposed loans are 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 ongoing concerns over Nigeria’s rising debt profile and the government’s continued reliance on borrowing to finance its expenditure. 

In April, the Federal Government increased its planned borrowing for 2026 by 11.31 trillion naira to 29.20 trillion naira, while projecting a fiscal deficit of 31.46 trillion naira and debt-servicing costs of 15.81 trillion naira. The borrowing plan has attracted criticism from opposition figures and other stakeholders, who have questioned the continued accumulation of debt despite the removal of the petrol subsidy. 

The presidential candidate of the Nigeria Democratic Congress, Peter Obi, had warned that Nigeria is at risk of a debt crisis, citing concerns over government borrowing, outstanding payments to contractors and the implementation of capital projects. 

However, the Federal Government has defended its borrowing strategy, maintaining that the funds are needed to finance infrastructure and other development projects.