By Muhammad Mamman
The House of Representatives has approved President Bola Ahmed Tinubu’s request to obtain a $2.35 billion loan from international lenders, despite growing public concern over Nigeria’s mounting debt profile.
The approval, granted during Tuesday’s plenary in Abuja, followed the consideration of a report by the House Committee on Aids, Loans and Debt Management, chaired by Hon. Abubakar Ahmad Yalleman.
The committee explained that the loan formed part of the 2022–2024 external borrowing plan submitted by the President and was aimed at funding key infrastructure and development projects across various sectors, including power, agriculture, education, and health.
“After due scrutiny, the committee recommends that the House do approve the request for the external borrowing of $2.35 billion,” the report read. “The facilities are to be sourced from the World Bank and other multilateral lenders at concessional rates.”
However, the decision has drawn mixed reactions from lawmakers, economists, and civil society groups, many of whom expressed worry about Nigeria’s growing reliance on external borrowing to fund its budget.
During the debate, some opposition members argued that the government must prioritise fiscal discipline and debt sustainability before seeking new loans.
“Nigeria’s debt service-to-revenue ratio is already among the highest in the world,” one lawmaker said. “We must ensure that these borrowings translate into tangible development outcomes, not recurrent expenditure.”
Defending the move, the House leadership maintained that the loans were necessary to stimulate growth and support ongoing reforms aimed at stabilising the economy.
“The funds are tied to critical projects that will drive productivity, create jobs, and boost infrastructure,” said the committee chair.
According to data from the Debt Management Office (DMO), Nigeria’s total public debt stood at over ₦121 trillion as of mid-2025, with external debt accounting for nearly 40 per cent of that figure.
Economic analysts have urged the government to strike a careful balance between development financing and debt sustainability, warning that excessive borrowing without effective project monitoring could worsen the fiscal situation.
Meanwhile, pro-reform economists argue that concessional loans from multilateral institutions remain a viable option for emerging economies — provided the funds are channelled into productive ventures with measurable impact.
With the House’s approval, the loan request will now proceed to the Senate for concurrence before final implementation.
