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Tinubu adds N8.4 trillion to Nigeria’s debt stock

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President Bola Tinubu has added N8.4 trillion to Nigeria’s debt stock.

A report by Vanguard  says that Nigeria’s total debt stock is set to rise to N155.1 trillion, following an additional $6 billion loan request by President Bola Tinubu, hurriedly approved by the Senate yesterday.

The $6 billion loan at an exchange rate of N1,400 per dollar, adds N8.4 trillion to the country’s debt stock which stood at N146.69 trillion at the end of 2025, to N155.1 trillion.

Experts, however, warned that the new borrowing comes with huge foreign exchange risks and will lead to worsening of the federal government’s debt service-to-revenue ratio, which is estimated at 60 per cent by the end of 2025.

The approval for the $6 billion  yesterday  came barely three and half hours after the President of the Senate, Senator Godswill Akpabio, read the letter from the President, seeking the approval.

Former Vice President, Atiku Abubakar, flayed what he described as lightning-speed approval of a fresh $6 billion external loan request by the National Assembly.

The letter was read the first time, scaled for a second reading, read the third time, and passed the same day by the senators.

The Senate approved the loans, following the presentation and consideration of the report by Senator Aliyu Wammakko, Chairman, Senate Committee on Local and Foreign Debts.

President Tinubu’s request to borrow an additional $6 billion  was contained in two separate letters addressed to the President of the Senate, Senator Godswill Akpabio,  read at plenary yesterday.

According to the President, the Senate should “Pursuant to Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003, to: Approve the establishment of a structured Total Return Swap, TRS, derivative external financing programme of up to $5 billion with First Abu Dhabi Bank (FAB), United Arab Emirates; “ Approve the indicative Terms and Conditions of the facility, including collateralisation with Naira-denominated Federal Government of Nigeria  Securities and margining obligations in USD; and Authorise the Federal Government to draw down the facility in tranches and issue FGN Securities as collateral.”

In the first letter read by Akpabio, President Tinubu requested the approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of United Arab Emirates.

In the letter, President Tinubu, who noted that the facility would be made available to Nigeria in tranches, said:  “The purpose of this letter is to request for the approval and resolution of the National Assembly pursuant to the provisions of section 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured total return swap, TRS, derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches.”

According to him, the proceeds will be used for budget implementation, development of priority infrastructure projects and repayment of relatively expensive domestic and external debts.

He added that the facility would also help the federal government meet urgent financial obligations when necessary.

The President said Nigeria’s total public debt currently stood at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.

He said the loan would be drawn in phases to reduce pressure on the country’s debt stock and servicing obligations.

In the second letter, Tinubu also asked the Senate to approve the issuance of naira-denominated Federal Government securities as collateral for the facility and the payment of margin obligations in US dollars.

In the letter, the President, who sought approval for a $1 billion United Kingdom, UK,  export finance loan facility arranged by Citibank, London branch, said the loan would be used for the reconstruction and rehabilitation of Lagos Port complex and Tin Can Island Port.

The letter read: “The rehabilitation of the ports project is a strategic modernisation initiative of the Federal Government of Nigeria, through the Nigerian Ports Authority, to restore and upgrade two of Nigeria’s most vital ports, namely Tin Can Island Port complex and Lagos Port complex, Apapa, which have reached critical engineering failures.”

According to him, the project is aimed at addressing infrastructure deficiencies, improving port efficiency, enhancing safety standards and aligning Nigeria’s port facilities with global best practices.

Tinubu added that the rehabilitation would help sustain Nigeria’s competitiveness as a maritime hub and support non-oil trade diversification.

Immediate C’ttee’s oversight

Akpabio subsequently referred the requests to the Senate Committee on Local and Foreign Debts, led by Senator Aliyu Wammakko, APC, Sokoto North, to carry out legislative actions on the request and report back immediately.

In his presentation, Senator Wammakko said:  “The proposed financing is structured as a Total Return Swap, TRS, a derivative-based instrument governed by International Swaps and Derivatives Association, ISDA, rules.

“The facility provides access to up to $5 billion, to be drawn in tranches, thereby allowing flexibility in utilisation and limiting immediate fiscal pressure. The transaction is collateralised by Naira-denominated FGN Securities at 133.3%, representing over-collateralisation to mitigate lender risk.

‘’The securities will be marked-to-market monthly, and any shortfall will require margin calls in USD cash, while excess collateral will be returned to the Federal Government.

“The facility has a tenor of six years, with a three-year break clause and annual rollover provisions subject to mutual agreement.

“The indicative pricing of the facility is SOFR +3.95% for the first tranche and SOFR + 4% for subsequent tranches, which is considered competitive relative to prevailing Eurobond yields for Nigeria. An arranger fee of 1.5% flat per tranche is payable upfront.

“The committee notes that the pricing reflects Nigeria’s current sovereign risk profile and compares favourably with alternative external borrowing options.”

On use of proceeds, the committee said:  “The proceeds of the facility are intended for: budget implementation, financing critical infrastructure projects, refinancing more expensive domestic and external debt, addressing urgent fiscal and liquidity needs

“In addition, 40% of the said fund will be used to fund the capital projects in the 2025 and 2026 budgets. The committee notes that these uses are consistent with national development priorities and fiscal consolidation objectives.”

On the impact on public debt and sustainability, Wammakko said:  “The facility will be reflected in Nigeria’s external debt stock as it is drawn, thereby increasing total public debt.

“As at December 31, 2025, Nigeria’s total public debt stood at approximately $103.20 billion (N146.69 trillion). The committee observes that Nigeria’s debt-to-GDP ratio of 36.92% remains within the 60% threshold approved by the Federal Executive Council and the 80% benchmark advised by international financial institutions.

“The phased drawdown structure helps to moderate the impact on debt stock and debt service obligations.

“Debt service-to-revenue ratio remains a concern (estimated at about 60%), underscoring the need for prudent debt management and enhanced revenue mobilisation, which we believe should improve as revenues of the government improve with the new tax reforms.

“The committee notes several advantages of the proposed TRS structure; immediate access to foreign currency liquidity without issuing new Eurobonds, thereby avoiding additional pressure on international capital markets.

“Flexible drawdown in tranches, enabling efficient cash flow management and reduced exposure.

“Strengthening bilateral financial relations with a major Gulf financial institution, enhancing Nigeria’s global financing options. Potential refinancing of expensive debt, thereby improving the overall cost profile of public debt.

“Embedded dispute resolution and valuation safeguards, which provide protection to the FGN in the execution of the transaction. Risks and Mitigating Factors. Currency Risk: Margin calls in USD may arise due to exchange rate volatility, Mitigation: Conservative collateralisation and phased drawdowns

“Market Risk: Fluctuations in the value of FGN securities used as collateral.”

Naira depreciation could spike loan costs

The new loan comes with significant foreign exchange risk, said Tunde Abidoye, Head of Equity Research, Quest Merchant Bank.

He said: “Apparently, the $5 billion is said to be a total return swap. Essentially, the FGN borrows $5 billion from an offshore bank, and will be collateralising this by issuing naira-denominated bonds which will be delivered to the bank. The FGN will pay the interest rate on the loan.

“Additionally, if exchange rates depreciate, the FGN will have to pay any difference between the value of the loan and the naira-denominated bond .

“The first implication is the exchange rate risk. If the naira depreciates, the value of the bond will decrease in dollar  terms. As such, the Federal Government will have to pay the bank the difference.

‘’Also, since the interest payment is in dollars, naira depreciation will increase the cost of servicing the loan, hence aggravating the nation’s debt service-revenue  ratio.

“This will be covered by regular margin payments – in the event that there is a depreciation. Consequently, this carries significant currency risk/exchange rate risk.”

Mounting foreign debt mortgages

the future of the country

Reacting to President Tinubu’s proposed $6 billion borrowing,  David Adonri,Executive Vice Chairman at High Cap Securities  Limited, said : “It appears that President Bola Tinubu is not constrained by any public debt limit.

‘’His borrowing spree locally and internationally has continued with undiminishing intensity. Financing an economy with external debt is a dangerous proposition because of the erratic flow of foreign income required to extinguish the obligations.

‘’The best option is to dominate the debt in domestic currency and let the foreign creditors convert their hard currencies into naira so that debt servicing will be in naira. Mounting foreign debt mortgages the future of the country.”

Underperformance in projected earnings could tighten fiscal space

Commenting as well, economy and communication expert, Clifford Egbomeade, said : “The borrowing request by Bola Tinubu should be viewed within the 2026 fiscal framework. ‘’The proposed budget stands at N58.18 trillion, with projected revenue of N34.33 trillion and a deficit of N23.85 trillion, equivalent to 4.28% of GDP. The additional $5bn in external borrowing, alongside a $1bn facility for port rehabilitation, will increase Nigeria’s external debt exposure and future repayment obligations.

“The port component has clear economic logic. The allocation of $429.7 million to Lagos Port Complex and $571.1 million to Tin Can Island targets critical trade infrastructure. Improved port efficiency can reduce congestion, shorten cargo clearance time, and enhance customs revenue, which may support broader economic activity.

“However, concern lies in debt sustainability and execution. External loans must be serviced in foreign currency, creating exposure to exchange rate movements. With revenue significantly below expenditure, any underperformance in projected earnings could tighten fiscal space.

‘’The overall impact will depend on whether these investments translate into measurable gains in productivity, trade efficiency, and government revenue.”

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KACRAN urges northern governors to adopt Buni’s economic blueprint, seeks FG’s soft loans

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has challenged the 18 Northern governors to adopt the commercial development blueprint of Yobe State Governor, Mai Mala Buni, as a strategy to tackle worsening unemployment, insecurity and economic decline across Northern Nigeria.

The association also called on President Bola Ahmed Tinubu to introduce accessible soft loans and special intervention funds to support traders and entrepreneurs, particularly those operating in newly constructed modern markets.

KACRAN said the intervention would stimulate commercial activities, create employment opportunities, reduce insecurity and contribute significantly to Nigeria’s Gross Domestic Product (GDP).

In a statement issued on Tuesday, October 13, 2026, and signed by its National President, Hon. Khalil Mohd Khalil, the association lamented the deteriorating economic and security situation in Northern Nigeria, describing it as a sharp departure from the region’s prosperous past.

It recalled that between the 1960s and 1990s, Northern Nigeria enjoyed relative peace, economic prosperity, strong communal relationships and a thriving commercial environment that attracted investors and traders from across Nigeria and beyond.

According to the association, the region was once renowned for its hospitality, trustworthiness, agricultural productivity and economic opportunities, which enabled young people to establish businesses and secure employment with relative ease.

KACRAN expressed concern that insecurity, industrial collapse, unemployment and growing ethnic, religious and political mistrust had undermined these achievements.

It particularly lamented the devastating impact of insurgency on farming, livestock production and fishing, warning that the increasing number of unemployed youths posed serious threats to food security and national stability.

“Anyone who knew the North of Sir Ahmadu Bello, the Sardauna of Sokoto, and sees the North of today, must shed tears and begin to think deeply on how to restore its lost glory and make it compete favourably with any region in the world,” the statement said.

The association identified Governor Buni’s investments in commercial infrastructure as a practical model for reversing the region’s economic decline.

It commended the governor for investing billions of naira in the construction of modern markets, trailer parks and agricultural processing facilities despite the security challenges that have affected Yobe State over the years.

KACRAN disclosed that the Buni administration had embarked on the construction of 19 modern markets across the state’s 17 local government areas.

According to the association, markets have been completed in Potiskum, Damaturu, Gashua, Nguru, Gaidam and other major towns, while projects in several other locations are at advanced stages of completion.

It explained that Gujba and Fune local government areas were among those designated to benefit from two modern markets each.

The association further disclosed that the administration had constructed a trailer park in Potiskum, while another facility was under construction in Damaturu to strengthen transportation and commercial activities.

It also highlighted the establishment of four sesame seed cleaning and packaging factories in Nguru, Machina, Damaturu and Potiskum as part of efforts to promote agricultural industrialisation and create employment opportunities.

KACRAN maintained that the projects had stimulated economic activities, restored confidence among business operators and generated thousands of direct and indirect employment opportunities.

The association particularly praised the state’s Commissioner for Commerce, Industry, Tourism and Solid Minerals, Hon. Kaigama Umar, for what it described as his commitment to the implementation of the governor’s economic development agenda.

It said Umar’s administrative experience and relationship with the business community had contributed significantly to the execution of the projects.

Calling for the replication of the initiative across the North, KACRAN said the region urgently needed deliberate investments in commercial infrastructure, industrial development and employment generation.

“On this note, KACRAN passionately challenges the 18 Northern Governors to adopt Governor Buni’s Commercial Revolution Blueprint as a workable template to revive the economy of the entire Northern Nigeria,” the statement said.

The association stressed that infrastructure development alone would not achieve the desired economic transformation without adequate financial support for traders, small businesses and entrepreneurs.

It consequently appealed to the Federal Government to establish financing arrangements that would enable business operators to access affordable credit and expand their operations.

“We also urgently call on His Excellency, President Bola Ahmed Tinubu, GCFR, to complement this laudable effort by providing accessible soft loans and special intervention funds for businessmen and women who have now secured befitting modern markets.

“This will boost their capital, create millions of jobs along the commercial value chain, drastically reduce insecurity, and significantly increase our nation’s GDP,” KACRAN stated.

The association expressed optimism that similar investments across the 18 Northern states, complemented by financial support for businesses, could help revive the region’s commercial activities and reduce the economic pressures contributing to insecurity.

It also commended the Permanent Secretary of the Yobe State Ministry of Commerce, Industry, Tourism and Solid Minerals, the ministry’s directors, the Managing Director of the Yobe State Investment Company, general managers and other officials for their roles in supervising the projects.

KACRAN urged political leaders across the region to prioritise economic recovery, job creation and sustainable commercial development over political differences.

It maintained that the economic transformation being pursued in Yobe State should serve as a broader development model for Northern Nigeria and the country.

“This revolution is not just for Yobe, it is for the North and for Nigeria,” the association declared.I can also make the story more investigative and compelling, with a stronger opening focusing on how insecurity, unemployment and the collapse of industries have devastated Northern Nigeria, before introducing Governor Buni’s economic revival programme.

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Swiftthinkers Essay Competition: 40 Lagos pupils qualify for next stage

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

A teacher, Temilola, has expressed satisfaction with his pupil’s performance in the Swiftthinkers Essay Competition, urging pupils to remain determined and persistent in their academic pursuits.

Temilola, who commended the pupil’s performance, emphasized the importance of perseverance, noting that academic success goes beyond passing or failing.

“I am excited he did well. I always tell my pupils that life is not about passing or failing. It is about not giving up,” Temilola said.

The Swiftthinkers Essay Competition is an initiative designed to promote academic excellence among pupils by assessing their knowledge and skills in key subject areas, including language, numerical analysis and reasoning.

The competition provides a platform for pupils to demonstrate their intellectual abilities while encouraging a culture of learning, critical thinking and determination.

The initiative was supported by UAC Foods, BOLAD Catering Services and Hothobs.

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KACRAN raises alarm over livestock exodus, warns of threat to food security

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has raised the alarm over the growing movement of livestock from Nigeria to other African countries, warning that the trend could threaten the nation’s food security, economic growth and national security.

 

The association called on Northern governors and other political leaders to urgently address the situation by strengthening livestock production, improving security and introducing policies to protect the country’s breeding stock.

 

In a press statement signed by its National President, Hon. Khalil Mohd Bello, and dated September 29, 2026, KACRAN expressed concern over what it described as a massive depletion of Nigeria’s livestock resources.

 

The association attributed the situation to insecurity, cattle rustling, inadequate grazing reserves, a shortage of water points and what it called the neglect of the livestock sector by some Northern state governments.

 

According to KACRAN, the situation has worsened in recent years, with pastoralists and their animals reportedly moving to neighbouring African countries in search of safer and more favourable conditions.

 

The association identified Gabon, the Central African Republic, Benin Republic, Togo, Burkina Faso, Cameroon, Chad and Ghana among the destinations, while also citing increased livestock movement to Southern Nigeria.

 

KACRAN expressed particular concern over the increasing number of cattle, sheep and rams reportedly transported from major livestock markets in Northern Nigeria to other African countries.

 

It identified Potiskum, Damaturu, Maiduguri, Ngalda and Gombe as some of the markets affected by the trend.

 

The association claimed that about five trailers of sheep and rams leave the small ruminants market in Potiskum daily for destinations in Burkina Faso, Côte d’Ivoire and Togo.

 

It further alleged that the volume of livestock transported to these countries now exceeds the number traditionally supplied to Southern Nigerian markets.

 

While acknowledging that livestock trading across borders is a legitimate business, KACRAN argued that greater efforts should be made to retain more of the trade within Nigeria by encouraging traders to supply markets in Lagos, Port Harcourt, Asaba and other Southern cities.

 

According to the association, such a strategy would help retain economic value within the country and improve domestic livestock availability at a time when insecurity and diplomatic challenges have reportedly affected livestock supplies from neighbouring Niger Republic, Chad and Cameroon.

 

The association warned that the continued movement of livestock out of Nigeria could further increase prices, making animals increasingly unaffordable for ordinary citizens during religious celebrations and other social occasions.

 

It cited current ram prices ranging from ₦300,000 to ₦1 million, depending on size, as an indication of the growing financial burden on consumers.

 

KACRAN also expressed concern that the situation could make it increasingly difficult for Nigerians to purchase livestock for Eid-el-Kabir and other celebrations if urgent measures are not taken.

 

The association stressed that protecting domestic livestock production was essential to food security, job creation and reducing Nigeria’s dependence on imported milk, meat and other livestock products.

 

To address the situation, the association urged Northern governors and political leaders to introduce immediate measures to protect the country’s livestock resources and strengthen the sector.

 

Among its recommendations, KACRAN called for an immediate embargo on the exportation of female animals and young breeding stock to other countries to protect Nigeria’s breeding capacity.

 

It also urged governments to identify major livestock exporters and provide them with soft loans and incentives to redirect their businesses towards domestic markets, particularly in Southern Nigeria.

 

The association further called for increased investment in livestock development through the rehabilitation of grazing reserves and cattle routes, alongside the provision of animal feed and reliable water points.

 

On security, KACRAN urged authorities to intensify efforts to combat cattle rustling and banditry, which it said had contributed significantly to livestock losses in the North-West, North-East and North-Central regions.

 

It also advocated the introduction and multiplication of improved livestock breeds to increase production and strengthen the country’s livestock population.

 

Other recommendations included providing affordable loans to livestock traders, farmers, fish farmers and businesses operating across the livestock value chain.

 

KACRAN called on state governors, local government chairmen, traditional rulers, businesspeople, security agencies and other stakeholders to work together to reverse the reported decline in Nigeria’s livestock resources.

 

The association maintained that a stronger livestock sector could generate employment for young Nigerians, conserve foreign exchange, increase government revenue and contribute significantly to the country’s gross domestic product.

 

It warned that failure to address the challenges confronting pastoralists and livestock producers could further weaken domestic production and undermine the country’s capacity to meet its growing demand for animal protein.

 

The association therefore urged Northern leaders to treat livestock development as a national economic and food security priority rather than an issue affecting pastoralists alone.

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