…NASS approved all loan requests since 2023
President Bola Tinubu’s fresh request for $21.67 billion in external loans is emerging as a major test of the National Assembly’s oversight role, its willingness to scrutinise government borrowing and hold the executive accountable.
The proposed loan request is the administration’s largest single borrowing request to the legislature and has intensified calls for lawmakers to examine the purpose, expected returns and projects tied to the loans before approving.
The request comprises $20.52 billion and €1.045 billion in external borrowing for the 2026 and 2027 fiscal years. It follows a series of borrowing proposals approved by lawmakers since Tinubu assumed office in 2023.
The latest proposal has revived questions and concerns about the economic returns on previous loans, the government’s capacity to repay additional debt and the extent of legislative scrutiny before new obligations are incurred.
According to the president, the proposed loans are intended to finance projects across power, transportation, agriculture, healthcare, education, water supply and national security, alongside employment generation and financial management reforms.
However, the submission has drawn scrutiny over the absence of a detailed public breakdown of individual projects, their costs, locations, contractors and expected financial returns.
The Senate referred the request to its Committee on Local and Foreign Debts, alongside the Appropriations and Finance committees, for examination, with a report expected within one week.
Reacting to the loan request, Atiku Abubakar, presidential candidate of the African Democratic Congress (ADC) and former vice president, urged lawmakers to withhold approval until the Federal Government provides detailed information on the projects to be financed.
“The President has listed broad sectors but has not provided Nigerians with a project-by-project account of what this enormous borrowing will fund. There are no clear project details, costs, locations or contractors for the public to scrutinise,” Atiku said in a statement on Tuesday.
“The National Assembly must not approve a single dollar until the President publishes every project, contract, cost, contractor, loan term and repayment obligation. No public money should be borrowed in the dark. No lawmaker should sign a blank cheque against Nigeria’s future.”
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Lawmakers approved all loan request since 2023
Since taking office in May 2023, Tinubu has secured legislative approval for several major borrowing facilities, ranging from the restructuring of central bank advances to international capital market financing and infrastructure loans.
In November 2023, the National Assembly approved an external borrowing plan of about $7.86 billion and €100 million for projects across the 36 states and the Federal Capital Territory.
A month later, lawmakers again approved a loan of N7.3 trillion in outstanding Central Bank of Nigeria Ways and Means advances into a 40-year instrument carrying nine percent annual interest and a three-year moratorium on principal repayment.
In May 2024, the Senate approved a $500 million facility for the Bureau of Public Enterprises’ mass-metering initiative in the electricity sector.
In October 2025, the National Assembly approved approximately $2.35 billion in external financing to help fund the 2025 budget deficit and refinance maturing Eurobonds.
The approval also covered a proposed $500 million sovereign Sukuk issuance for infrastructure financing.
The borrowing programme expanded further in 2026. In March, lawmakers approved a $6 billion package comprising a $5 billion facility from First Abu Dhabi Bank for budget support and debt refinancing, and a $1 billion UK Export Finance-backed facility arranged through Citibank for the rehabilitation of Tin Can Island Port and the Lagos Port Complex.
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In April, the National Assembly approved a $516.3 million loan from Deutsche Bank AG for Section I of the Sokoto–Badagry Superhighway.
The facility has a nine-year tenure, including a three-year grace period, and an interest rate of the Secured Overnight Financing Rate plus 5.3 percentage points annually.
The latest request is not an isolated borrowing proposal but part of a series of external financing approvals since Tinubu assumed office.
This has spurred concerns among stakeholders who have called the lawmakers a rubber-stamp Assembly.
“This is not just about securing the loan, it is the inability to defend the loan that concerns us as stakeholders and citizens of this country. We have to speak up now because the Assembly, as we know it, is truly a rubber-stamp Assembly, they do not check the actions of the Executive, they just approve it,” said Peter Olaseni, a political analyst.
Debt rises as scrutiny intensifies
The scale of the new request is sharpening concerns about whether additional borrowing can generate sufficient economic activity and government revenue to cover repayment obligations.
Data from independent think tank Agora Policy show that Nigeria’s public debt rose from N87.38 trillion in June 2023 to N166.79 trillion in June 2026, an increase of N79.41 trillion, or 91 percent. If the latest facility is fully contracted and drawn down, the report estimates that public debt could approach N200 trillion.
The government has argued that external borrowing is necessary to bridge Nigeria’s infrastructure financing gap and support economic growth.
“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue broader external borrowings to close the financing shortfall,” Tinubu said in a letter to federal lawmakers.
However, the latest controversy has shifted attention towards the disclosure of project costs, borrowing terms, implementation schedules and measurable returns.
Eze Onyekpere, lead director of the Centre for Social Justice, said the use of borrowed funds was more important than the act of borrowing itself.
“We do not have much problem with collecting loans, but what you actually do with borrowed funds, and so that is the critical challenge of Nigeria. The law is clear that you only borrow for capital expenditure, capital regenerative expenditure or human capital development,” he said.
Taofeek Oyedokun is a correspondent at BusinessDay with years of experience reporting on political economy, public policy, migration, environment/climate change, and social justice. A graduate of Political Science from the University of Lagos, he has also earned multiple professional certificates in journalism and media-related training. Known for his clear, data-driven reporting, Oyedokun covers a wide range of national and international socioeconomic issues, bringing depth, balance, and public-interest focus to his work.
