Nigeria’s total debt stock is set to rise to N155.1 trillion after the Senate approved President Bola Tinubu’s request for a $6 billion external loan. The loan, comprising a $5 billion facility from First Abu Dhabi Bank and a $1 billion loan from UK Export Finance, aims to support budget implementation, fund critical infrastructure projects, and refinance expensive domestic and external debts.

The approved loan will be used for:

– Budget Implementation: Funding priority projects in the 2025 and 2026 budgets

– Infrastructure Development: Rehabilitating Lagos Port Complex and Tin Can Island Port

– Debt Refinancing: Repaying expensive domestic and external debts

Critics, including former Vice President Atiku Abubakar, have expressed concerns over Nigeria’s rising debt profile and potential burden on future generations. The government maintains that the loans are necessary to address fiscal gaps and support economic growth.