President Bola Tinubu has formally requested Senate approval to secure a fresh $516.33 million external loan from Deutsche Bank, a move that comes as Nigeria's total public debt surpasses ₦159 trillion. The request, transmitted to the National Assembly and read on the Senate floor by Senate President Godswill Akpabio, has been referred to the Senate Committee on Local and Foreign Debts for review.
Loan for Infrastructure Development
The proposed loan is earmarked for the Sokoto–Badagry Super Highway, a major infrastructure project designed to improve connectivity and stimulate economic activity across multiple regions. According to the proposal, the funding will support an already approved infrastructure financing programme.
Senate Scrutiny and Timeline
Lawmakers are expected to examine the loan details and submit a report within one week, after which the Senate will decide on approval. The request has intensified public debate over Nigeria's borrowing strategy, with critics questioning sustainability amid rising debt servicing costs.
Rising Debt Profile
Data from the Debt Management Office (DMO) shows Nigeria's total public debt has grown significantly, driven by repeated domestic and external borrowing. Under President Tinubu, borrowing has been a key tool for funding infrastructure, budget deficits, and economic reforms. However, concerns persist over the growing debt burden, which consumes a large portion of government revenue.
Supporters and Critics
Supporters argue that strategic borrowing is essential for closing infrastructure gaps and driving development, especially in a challenging economic environment with inflation and foreign exchange constraints. Critics, however, warn of sustainability risks and the impact on citizens already facing high living costs.
If approved, the $516 million facility will add to Nigeria's external debt stock, further expanding the government's borrowing commitments. The Senate's decision in the coming days is expected to shape public discourse on fiscal policy.
