Since President Bola Ahmed Tinubu assumed office in May 2023, Nigeria has embarked on one of its most aggressive borrowing sprees in recent history. With over $7.2 billion already secured in foreign loans—primarily from the World Bank—and a $21.5 billion loan request pending approval, concerns are mounting over the country’s growing debt burden and its long-term implications.
From social safety nets and adolescent girls’ education to power sector recovery and economic stabilization, the loan profile under Tinubu cuts across various sectors. But critics and economists alike are asking: at what cost?
A Closer Look at the Loans
The breakdown of loans since May 2023 reveals a heavy dependence on World Bank funding:
$750 million (June 2023) for Power Sector Recovery
$500 million (June 2023) for Women Empowerment
$800 million (July 2023) for Social Safety Nets
$700 million (September 2023) for Adolescent Girls’ Education
$2.25 billion (June 2024) for Economic Stabilization
$1.57 billion (September 2024) for Health, Education, and Power
$632 million (March 2025) for Nutrition and Education
This brings the total to $7.2 billion, with additional loans from the African Development Bank ($500 million) and other development partners under consideration.
In May 2025, the administration submitted a $21.5 billion external borrowing request to the National Assembly. The funding is expected to support infrastructure, renewable energy, and digital transformation projects.
Who Is Lending, and Who Is Owed?
So far, the World Bank has been the single largest source of foreign loans for Nigeria under Tinubu, signaling a shift from the past reliance on Chinese and commercial lenders. This reflects the administration’s tilt toward concessional funding, which often comes with lower interest rates but stringent reform conditions.
No confirmed loans have been recorded from the IMF, China, or Paris Club nations during this period, although discussions are reportedly ongoing.
Economic Fallout: Can Nigeria Sustain This Debt?
The question isn’t whether loans are necessary—many developing countries borrow to fund growth—but whether the borrowing is strategic and sustainable.
According to Debt Management Office (DMO), total public debt rose to over N97 trillion by Q1 2025. Debt servicing now consumes more than 70% of Nigeria’s revenue, leaving little room for capital projects or social investments.
“We are entering a debt trap where we borrow to pay interest, not to develop,” says Lagos-based economist, Dr. Olatunji Musa.
Debt and the Everyday Nigerian
While billions flow in, the average Nigerian continues to battle soaring food prices, fuel costs, and depreciating naira value. The removal of fuel subsidies and exchange rate reforms have not yet delivered the economic revival promised by Tinubu’s Renewed Hope Agenda.
READ ALSO: Tinubu Asks NASS to Approve $21.5bn Loan, ₦758bn Pension Bond
This disconnect has sparked outrage across social media, with influencers and activists warning of a bleak economic future for the youth.
“How will unborn generations pay up these debts? Nigeria must wake up!” Kenyan pan-Africanist Prof. PLO Lumumba recently asked, echoing growing regional concern over Nigeria’s fiscal direction.
What Are We Borrowing For?
Some loans, such as those targeting girls’ education or maternal nutrition, are commendable. But the opacity surrounding disbursement and implementation remains a major worry.
Civil society organizations like BudgIT have repeatedly called for full transparency, insisting that every dollar borrowed must be tracked, audited, and linked to measurable outcomes.
The 2027 Factor: Is Politics Driving the Loans?
With Nigeria heading into another election cycle in 2027, some analysts believe the rush to secure external financing may not be purely economic.
“This level of borrowing could pave the way for politically motivated spending,” warns policy analyst Hafsat Oladipo. “It risks becoming a war chest rather than a development strategy.”
A Call for a National Debt Conversation
There is no doubt that Nigeria needs funding for critical development. However, the current pace of borrowing, coupled with poor revenue generation, creates an unsustainable cycle.
Experts recommend the following steps:
Greater transparency on loan terms and disbursement plans
Stronger oversight by the National Assembly
Fiscal reforms to boost non-oil revenue
Public engagement on the true cost of debt
Conclusion: Borrowing the Future
Tinubu’s government may argue that it is borrowing to fix a broken system. But unless the funds are used efficiently and transparently, Nigeria risks mortgaging its future.
As the loans pile up and repayment deadlines loom, the biggest question remains: Are we investing in growth, or simply borrowing time?