Using the current official exchange rate as of May 27, 2025 at N650 to $1; the proposed borrowings of $21 billion (N13.65 trillion), €2.19 billion (N4 trillion), 15 billion Japanese Yen (N174 billion) and €65 million (N116 billion) will amount to N17.355 trillion, pushing the country’s debt burden to N162.025 trillion.
President Bola Tinubu has requested National Assembly approval for $21.5 billion in foreign loans, which could push Nigeria’s total public debt to N162 trillion amid economic challenges.
In letters read by Senate President Godswill Akpabio and Speaker Tajudeen Abbas, Tinubu sought borrowing in dollars, euros, and yen for infrastructure, agriculture, and social programs. At current exchange rates, the loans—including $21.5 billion (N13.65 trillion) and €2.19 billion (N4 trillion)—total N17.4 trillion. The president cited subsidy removal and low revenues as justification, stressing the funds would target job creation and poverty reduction.
“These projects were selected based on technical evaluations to address infrastructure gaps and improve livelihoods,” Tinubu said, noting initiatives would span all 36 states and Abuja. Critics, however, worry about rising debt sustainability risks as Nigeria’s obligations near 40% of GDP.
If approved, the borrowing would finance power, railways, and healthcare—key sectors in Tinubu’s reform agenda. The move comes amid IMF warnings about Nigeria’s debt servicing costs, which consumed 96% of revenue in 2024.
READ THE FULL STORY IN DAILY TRUST