Nigeria’s public debt will rise to about N155 trillion following the Senate’s approval of a fresh $6 billion external loan requested by President Bola Tinubu.
The approval, granted within hours by the Senate, adds roughly N8.4 trillion to the country’s debt stock, intensifying worries over debt servicing and its effects on Nigerians. Analysts said it might lead to higher inflation, rising cost of goods, and tighter economic conditions.
Economic observers noted that increased borrowing, especially in foreign currency, puts pressure on the naira. This often translates to higher prices for imported goods, fuel, and essential commodities commonly traded across the country.
“Each time the government borrows like this, the dollar rises, and goods become more expensive. We are the ones who suffer it.”
Experts warn that with Nigeria’s debt service-to-revenue ratio already projected at about 60 per cent, more borrowing could limit government spending on critical sectors such as healthcare, education, and infrastructure.
The Federal Government said the loan would fund infrastructure, including the rehabilitation of key ports in Lagos, and support budget implementation. However, critics, including former Vice President Atiku Abubakar, have faulted both the Presidency and National Assembly for what they described as a “hasty” approval process, warning of long-term economic consequences.
Financial analysts also caution that the loan structure exposes Nigeria to foreign exchange risks. A weaker naira could significantly increase repayment costs, further straining public finances.
