President Bola Tinubu has requested the Senate to approve a substantial loan of N1.150 trillion to support Nigeria's 2025 budget, just six days after securing external borrowing approval of $2.3 billion. This latest borrowing plan comes amidst rising public debt and increasing debt servicing costs, which have reached N13.12 trillion in 2024, a 68% increase from the previous year. The external loan is expected to be sourced through various instruments, including Eurobond issuance, loan syndications, and direct borrowing from international financial institutions. This borrowing strategy is not new; successive governments in Nigeria have relied on loans to finance projects, even while struggling to settle existing debts. President Tinubu defended his approach, emphasizing his commitment to infrastructural development and arguing that borrowing is not a crime. However, the dual budget operations of 2024 and 2025 have raised concerns about fund releases for project execution, with speculation that the 2025 capital budget may be extended to 2026.
