Nigeria Seeks Over $21.5 Billion in Foreign Loans to Plug Budget Gap and Boost Growth

The Nigerian government is seeking more than $21.5 billion in foreign borrowing as part of its 2025–2026 borrowing plan aimed at addressing financial shortfalls and driving economic growth.

President Bola Tinubu has requested parliamentary approval for €2.2 billion ($2.5 billion), ¥15 billion ($103.97 million), and an additional $2 billion in domestic borrowing.

The proposed loans represent about 60% of the projected spending in the 2025 national budget and reflect a shift in strategy toward attracting foreign equity investments rather than relying heavily on debt, to reduce rising borrowing costs.

According to the government, the funds will be channeled into all sectors of the economy, with key focus areas including infrastructure, agriculture, health, education, water supply, security, job creation, and financial reforms.

Tinubu’s administration, which scrapped the petrol subsidy and devalued the naira in 2023 as part of sweeping reforms, has faced inflationary pressures and a cost-of-living crisis.

Despite these challenges, the World Bank recently reported Nigeria’s strongest economic growth in nearly a decade in 2024, buoyed by a strong fourth quarter and improved fiscal performance, though it flagged high inflation as a continuing concern.