Tinubu Seeks $24 Billion in Foreign Loans to Rebuild Nigeria – But at What Cost?

By Dr. Michael Omoruyi | iNewsAfrica Economic Desk | New York City – May 28, 2025

President Bola Ahmed Tinubu has asked the National Assembly to approve a sweeping foreign borrowing plan totaling $24.2 billion, aimed at revitalizing Nigeria’s flagging economy and financing large-scale development projects across the federation.

The proposed loan package includes approximately $21.5 billion in U.S. dollars, €2.2 billion in euros, and ¥15 billion in Japanese yen. According to government sources, the funds are earmarked for priority sectors including infrastructure, healthcare, agriculture, education, energy, transportation, and national security.

The Justification: Funding Critical National Needs

Nigeria continues to face enormous development deficits: deteriorating roads and bridges, overburdened hospitals, inadequate educational facilities, unreliable power supply, and increasing insecurity. Tinubu’s administration argues that external borrowing is necessary to unlock Nigeria’s economic potential and stabilize the country after years of fiscal stagnation, rising debt service obligations, and global economic shocks.

“We are not borrowing for consumption. These funds will go into real capital projects that directly impact people’s lives and stimulate economic growth,” said a senior Ministry of Finance official.

The proposed loans will also target job creation, youth development, agricultural transformation, and the modernization of rural infrastructure. Several of the projects are expected to be co-financed by international lenders, including the World Bank, African Development Bank (AfDB), and the China Exim Bank.

Mounting Concerns Over Debt Sustainability

Despite the promise of development, Nigeria’s growing debt burden remains a red flag for many analysts and civil society advocates. With total public debt projected to cross ₦180 trillion in 2025, critics warn that Nigeria is sliding toward a debt trap.

Even though Nigeria’s debt-to-GDP ratio is still below 40% – considered manageable by international standards – the cost of debt servicing has already consumed a significant portion of government revenue. In 2024, Nigeria reportedly spent over 90% of its revenue on debt service, leaving little room for social spending or economic stimulus.

“This scale of borrowing is dangerous without credible fiscal discipline. We risk mortgaging our children’s future for political expediency,” warned Prof. Tade Ayoola, an economist at the University of Lagos.

Economic Headwinds: Inflation, Currency Pressure, and Poverty

Tinubu’s administration has already taken several tough economic measures, including the removal of fuel subsidies, unification of exchange rates, and restructuring of the Nigerian National Petroleum Company (NNPC). While praised by international donors, these reforms have sparked a steep rise in inflation, currently hovering above 30%, and have deepened economic hardship for ordinary Nigerians.

As food prices soar, unemployment remains high, and the naira continues to depreciate, many Nigerians are asking whether taking on more foreign debt – especially in multiple currencies – might further strain the economy.

What the Government Must Get Right

To avoid repeating past mistakes where borrowed funds were wasted or misappropriated, financial experts are urging the Tinubu administration to:

• Ensure transparency in loan disbursement and project execution through independent audits and public dashboards.

• Strengthen domestic revenue mobilization, especially through tax reforms and expansion of the formal economy.

• Establish a sovereign investment tracking agency that evaluates the return on investment (ROI) for all externally funded projects.

• Engage Nigerians with clear communication, showing where every naira or dollar is going – and what citizens can expect in return.

What’s Next: Legislative Scrutiny and Public Engagement

The National Assembly will soon begin debating the loan proposal, with opposition lawmakers already calling for greater oversight and regional equity in project distribution.

Meanwhile, the Nigerian public is watching closely. Social media has erupted with mixed reactions, with many citizens expressing skepticism, given the country’s history of poor fiscal management and elite corruption.

If approved and effectively implemented, this loan package could help Nigeria close its infrastructure gap, lift millions out of poverty, and position the country for long-term growth. But if mismanaged, it could worsen inequality, deepen fiscal vulnerability, and erode public trust in government.

📊 At a Glance: Tinubu’s Foreign Loan Proposal

President Tinubu’s $24 billion foreign loan plan represents a bold gamble to rescue Nigeria’s economy from stagnation. But boldness must be matched with accountability, fiscal responsibility, and a genuine commitment to deliver results. Nigerians have heard big promises before. This time, the government must deliver – or be held accountable.

– iNewsAfrica Economic Desk
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