Nigeria seeks more borrowing for 2026-2027

Nigeria's President Bola Tinubu has asked the Senate to approve an additional $21.7 billion in external borrowing for the 2026-2027 budget period. This funding is meant to support infrastructure development and various sectors like electricity, transport, and education.

Borrowing aims to boost development

The proposed funds are intended to address the country's infrastructure gap and support projects in health, agriculture, and security. Tinubu emphasized that the initiatives would create jobs, improve skills, and reduce poverty while enhancing food security.

Public debt rises to $120.93 billion

By the end of June 2026, Nigeria's public debt had reached $120.93 billion, an increase of 7.44 billion naira from March 2026. The debt is expected to account for 35.4% of the country’s GDP in 2026, according to the International Monetary Fund (IMF).

IMF sees moderate debt risk

The IMF assessed the risk of sovereign debt tensions as moderate, citing Nigeria's low debt-to-GDP ratio, the long-term nature of its debt, and improved economic conditions. These factors suggest the country can manage its debt obligations without major issues.

Borrowing request similar to previous one

The new borrowing request is comparable in size to the $21.5 billion external loan approved in 2025 for the 2025-2026 budget. That plan was also supported by a Japanese loan and a European grant.

Senate already aware of the plan

The Senate president noted that Tinubu's borrowing proposal was already included in the government's borrowing frameworks and budget documents covering the 2025-2027 period. This suggests the request is part of a pre-existing financial strategy.