President Tinubu Seeks Approval for $21.5 Billion External Loan Amid Economic Reforms
President Bola Tinubu has formally approached the National Assembly for approval to borrow a total of $21.5 billion from various external sources. This request, submitted in late May 2025, comes as part of a broader financial strategy to support Nigeria’s economic recovery and address budgetary gaps.
The loan package also includes €2.19 billion, 15 billion Japanese Yen, and a $65 million grant, indicating a multi-currency, multi-lender approach. The president explained that the loan is intended to fund critical infrastructure, social services, and poverty alleviation programs across the country.
Since assuming office in 2023, President Tinubu has implemented bold reforms aimed at stabilizing Nigeria’s economy. These include the removal of fuel subsidies and a shift to a unified exchange rate system, which were initially hailed by international stakeholders.
However, the impact on citizens has been severe. Prices of goods and services have skyrocketed, leading to an unprecedented cost-of-living crisis. The external borrowing plan, therefore, is seen as a way to mitigate some of these adverse effects and inject needed capital into essential sectors.
Critics of the proposed loan have raised concerns about Nigeria’s growing debt profile, which they say could become unsustainable. Nigeria’s total public debt stood at over ₦97 trillion by the end of 2024, and further borrowing may worsen repayment burdens for future generations. Economists are also calling for better fiscal discipline and transparent implementation of loan-backed projects to ensure they bring measurable value to the economy.
On the other hand, government officials maintain that the loans will be strategically deployed and that Nigeria must borrow to invest in growth. Projects earmarked for funding include power infrastructure, roads, healthcare, education, and job creation schemes. According to the presidency, these investments are expected to boost productivity, attract private sector participation, and eventually lead to increased revenue generation.
The National Assembly is currently reviewing the request, and the decision is expected to generate intense public discourse. Nigerians are watching closely to see whether the borrowed funds, if approved, will translate into real economic relief or deepen the nation’s financial strain. As the country faces a complex mix of economic pressures, this borrowing proposal may prove pivotal in determining the success or failure of Tinubu’s reform agenda.