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Nigeria

Tinubu seeks $7.7bn external loan approval, drawing analyst scrutiny

The request to the National Assembly for new external borrowing raises questions for investors and budget planners about debt servicing and exchange-rate exposure.

Photo: The Sun Nigeria

What happened

President Bola Tinubu has asked the National Assembly to approve an additional $7.707 billion in external borrowing. allafrica.com+1 Tinubu formally withdrew an earlier external borrowing request of $20.5 billion and replaced it with the new proposal. allafrica.com In a letter dated October 26, 2026, the President said the loan would support the 2026 Appropriation Act and priority sectors including defence and security, transportation, agriculture, power, education and healthcare. allafrica.com Economists and financial analysts have questioned the request, demanding details of how the funds will be spent. allafrica.com

Around it

Analysts warned the facility could expose Nigeria to exchange-rate risks and impose a heavier debt burden on taxpayers and future generations. allafrica.com Figures from the Debt Management Office put Nigeria's total public debt at N166.79 trillion as of June 30, 2026, equivalent to $120.93 billion. The Sun Nigeria Debt servicing consumes about 65 per cent of government revenue, according to the same figures. The Sun Nigeria Critics have questioned the Senate's oversight of successive multibillion-dollar borrowing approvals and whether earlier borrowed funds have produced completed projects. The Sun Nigeria

Sources

  1. allafrica.comNigeria: Analysts Query President's $7.7bn Loan Request, Demand Spending Details
  2. The Sun NigeriaN166.79trn debt: Fresh $7.7bn loan puts Senate under scrutiny

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