posted 27th May 2025
Nigeria Seeks Approval for £17.5bn Borrowing Plan to Tackle Infrastructure and Economic Challenges
Abuja, Nigeria – President Bola Tinubu has submitted a request to the Nigerian Senate for approval to borrow approximately £17.5 billion (USD 21.5 billion, EUR 2.1 billion, and 15 billion Japanese Yen) alongside a grant of EUR 65 million to address critical economic and infrastructural challenges facing the nation. The move comes as Nigeria grapples with the economic fallout from the removal of fuel subsidies and a growing national debt.
In a letter to the Senate, President Tinubu outlined the rationale for the borrowing plan, stating, “In light of the removal of the fuel subsidy and its impact on the national economy, approval is called for the borrowing plan, which amounts to USD 21,543,647,912, EUR 2,193,856,324.54, 15 billion Yen, and a grant of 65 million euros, respectively.” The President emphasised that the funds would be directed towards critical infrastructure projects, including railways and healthcare, to bridge Nigeria’s significant infrastructure deficit.
The borrowing plan, part of the 2025-2026 External Borrowing Plan, aims to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security across all 36 states and the Federal Capital Territory. The initiative is intended to stabilise the economy amid declining domestic demand and a shortfall in financial resources.
However, the proposal has sparked concerns among observers, with some warning of the risks posed by Nigeria’s rising indebtedness since President Tinubu took office. Critics, including social media commentators, have expressed fears that the scale of borrowing could push the country towards bankruptcy if not managed prudently.
The Senate is expected to deliberate on the request in the coming weeks, weighing the potential benefits of the proposed investments against the growing burden of national debt. The outcome of this decision will likely have significant implications for Nigeria’s economic trajectory and the government’s ability to deliver on its promises to improve livelihoods and infrastructure.
