Nigeria’s total debt stock is projected to climb to N155.1 trillion after the Senate fast-tracked approval for President Bola Tinubu’s latest $6 billion external loan request. Using an exchange rate of N1,400 per dollar, this fresh borrowing adds N8.4 trillion to the previous year-end debt of N146.69 trillion.
The legislative process was notably swift, taking just three and a half hours from the moment Senate President Godswill Akpabio read the request to its final passage. Former Vice President Atiku Abubakar criticized this “lightning-speed” approval, noting the bill scaled all readings in a single day without typical deliberation.
Financial experts are raising alarms over the significant foreign exchange risks associated with dollar-denominated debt. There are growing fears that this move will further strain the federal government’s debt service-to-revenue ratio, which is already estimated to hit 60% by the end of 2025.
The approval followed a report by Senator Aliyu Wammakko, Chairman of the Senate Committee on Local and Foreign Debts. Despite the warnings regarding fiscal sustainability and the rising cost of repayment, the Senate moved forward with the President’s request to secure the additional funding.
