Nigeria’s debt burden may rise significantly as President Tinubu seeks National Assembly approval for $24.14bn in new foreign loans. At the current exchange rate of N1,583.74/$1, this would add around N38.24tn to the debt stock, potentially pushing total public debt from N144.67tn at the end of 2024 to over N182.91tn by 2026. Economists warn of mounting debt-servicing pressures.
The proposed borrowing package includes $21.54bn, €2.19bn, and ¥15bn. Based on current market exchange rates €1 = $1.1381 and ¥1 = $0.0068 the euro portion equals about $2.5bn, while the yen adds roughly $102 million.
Altogether, the loans total an estimated $24.14bn. At the official exchange rate of N1,583.7388/$1, this translates to approximately N38.24tn. As of December 31, 2024, Nigeria’s total public debt stood at N144.67tn trillion, according to the Debt Management Office.
This reflected a 48.58% surge from the N97.34tn recorded at the close of 2023, fueled by sharp increases in both domestic and external borrowing and further intensified by the naira’s weakening against key foreign currencies.
The exchange rate sharply increased the naira value of Nigeria’s external debt, which rose from N38.22tn ($42.5bn) in December 2023 to N70.29tn ($45.78bn) by the end of 2024 an 83. 89% jump.
Domestic debt also grew, rising from N59.12tn to N74.38tn over the same period, a 25.77% increase.
The federal government was responsible for N70.41tn of the total debt, up from N53.26tn, while debt held by states and the Federal Capital Territory fell from N5.86tn to N3.97tn, reflecting a more restrained borrowing approach by subnational governments.
If fully approved, the new borrowing would raise Nigeria’s external debt from $45.78bn to approximately $69.92bn an increase of $24.14bn, or 52.7%. In naira terms, this would push the external debt component of the country’s total public debt to over N108tn.
The proposed loans also represent a significant addition to the federal government’s current debt profile. As of December 2024, the government’s total debt stood at N133.33tn, consisting of N70.41tn in domestic debt and N62.92tn in external debt.
