News

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

Published

2 months ago

April 1, 2026

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.”

News

Bullet sounds boom as election approaches

Published

11 hours ago

June 11, 2026

News Diggers

Tension gripped Osogbo, Osun State capital, on Tuesday following violent clashes between supporters of the ruling Accord Party and the opposition All Progressives Congress (APC), which left one person dead and two others injured.

The incident, which occurred in several parts of the city, also triggered heavy gunfire that sent residents fleeing for safety in panic as security operatives and political supporters allegedly exchanged shots in different locations.

The injured victims were rushed to the UNIOSUN Teaching Hospital and other private medical facilities in the state capital for treatment.

Eyewitnesses said the violence began around 1:30pm when a convoy allegedly conveying APC supporters moved through parts of the city, including Akoda and Aisu junction. The movement was said to have sparked a confrontation with some Accord Party supporters, escalating into shooting.

Gunshots were later reported in areas including Owode, Aisu, Olaiya, Oke-Fia, Government House axis, and Old Garage, throwing the state capital into confusion as residents scampered for safety.

It was further gathered that security operatives attached to the convoy allegedly fired shots sporadically in an attempt to disperse attackers at Aisu junction and other flashpoints, further heightening tension across the city.

Reacting to the violence, Governor Ademola Adeleke described the attacks as “unprovoked and outrageous,” alleging attempts to destabilise the state. He called on the National Security Adviser, Inspector General of Police, Department of State Services (DSS), and other security heads to intervene urgently, especially after visiting victims at the UNIOSUN Teaching Hospital and other health facilities.

Adeleke also accused unnamed political actors of sponsoring violence, claiming that recent months had seen repeated attacks targeting members of the Accord Party across the state. He further alleged that security agencies had not acted decisively to arrest perpetrators.

According to him, earlier reports of violence also emerged from Ile-Ife, particularly the Sabo area, before spreading to Osogbo and Ede.

“The attackers in a 15-vehicle convoy branded with AMBO pictures further launched attacks at Owode. They then proceeded to Olaiya, Old Garage, Oke-Fia and even around Government House,” the governor alleged.

He appealed to President Bola Tinubu to intervene and caution political actors allegedly linked to the unrest, insisting that elections must be conducted in a peaceful atmosphere.

Meanwhile, the Accord Party chairman, Pastor Victor Akande, also condemned the violence, calling on the Inspector General of Police, Kayode Egbetokun, to investigate the incident and alleging the involvement of the APC governorship candidate, Asiwaju Bola Oyebamiji.

Security agencies had yet to issue an official statement on the incident at the time of filing this report.

News

Criminals, not bandit killed army officer- Police

Published

11 hours ago

June 11, 2026

News Diggers

The Ogun State Police Command has confirmed that five persons, including a soldier and a local hunter, died during a violent attack in Magbon Etido, Mowe, in Obafemi Owode Local Government Area of the state.

In a statement issued in Abeokuta on Wednesday, the Police Public Relations Officer, Oluseyi Babaseyi, said the incident was an “isolated criminal attack” and not a bandit operation as speculated in some quarters.

According to the command, the attackers struck the community, killing a soldier who was on security duty and injuring another military personnel, who is currently receiving treatment.

The assailants also abducted four residents during the raid. Babaseyi said police operatives, working alongside the military and other security agencies, immediately launched a coordinated search-and-rescue operation.

He added that one of the abducted victims was rescued alive, while the remains of the other three were later recovered during the operation.

During the subsequent bush-combing exercise, a local hunter assisting security operatives was reportedly killed in an encounter with the fleeing suspects.

“The Command extends its condolences to his family,” the statement said, while assuring that efforts were ongoing to track down the perpetrators and prevent further attacks.

News

2027: North rules out Tinubu, says policies on economy highly disappointing

Published

2 days ago

June 10, 2026

News Diggers

The National Publicity Secretary of the Arewa Consultative Forum (ACF), Prof. Tukur Mohammed-Baba, has said President Bola Tinubu has lost considerable political goodwill in Northern Nigeria since the 2023 general election, citing worsening economic conditions and insecurity.

Mohammed-Baba made the remarks during an interview on PrimeTime on Arise Television on Monday, where he criticised the country’s political leadership and expressed disappointment over the lack of clear policy direction from major political actors ahead of the 2027 presidential election.

According to him, the North has become increasingly disillusioned with the political class, which he accused of prioritising personal ambitions over the welfare of citizens.

“I have not seen a party that articulates a clear policy ambition or an ideological standard. The average northern voter is disillusioned and has been for a long time,” he said.

“We have tried all kinds of permutations—northern candidates, Muslim-Muslim tickets, and so on. It seems to the average northerner that all this politics is about personalities and personal interests. It is not about people.”

Assessing Tinubu’s administration, Mohammed-Baba said the impact of government policies had been difficult for many Nigerians.

“The impact of his policies on the economy and especially on individual lives has been highly disappointing, if not disturbing,” he said.

He also expressed concern over the security situation across parts of the country, arguing that the government’s response had fallen short of expectations.

“Furthermore, the insecurity thing, no matter what the government says, is getting worse,” he said, noting that discussions around the deployment of forest guards had come only after renewed attacks in parts of the country.

Mohammed-Baba warned that communities increasingly resorting to self-help in the face of insecurity posed a threat to the authority of the state.

“We are gradually normalising self-help—that unless you do something, the government will not be there to protect you. That undermines the essence of the role of the state,” he stated.

The ACF spokesman also criticised former Vice President Atiku Abubakar, describing him as a “recurring decimal” in Nigeria’s presidential politics.

“I don’t see anything from him that presents an alternative apart from saying this government has failed,” Mohammed-Baba said. “Where is the beef?”

On Peter Obi, he argued that the former Anambra State governor had failed to sustain whatever political goodwill he enjoyed in the North before the 2023 elections.

“He has moved to two or three parties. The question we ask is: what does he want?” he said.

Mohammed-Baba further criticised Obi’s running mate, Rabiu Kwankwaso, over comments he said appeared to compare himself with revered northern figures such as Ahmadu Bello and Aminu Kano.

“In the North, that is very irreverent. It would be highly delusional for him to go that far and say he presents an alternative,” he said.

“An alternative in terms of what? Has he articulated anything on the economy, security, or infrastructure? When you keep talking about things in abstract terms that run counter-intuitive to what the people have held on to, you will run into trouble.”

Asked to identify a potential presidential aspirant capable of winning northern support ahead of 2027, Mohammed-Baba declined to endorse anyone.

“We are waiting to see,” he said.

He also cautioned the ruling All Progressives Congress (APC) against complacency, warning that attempts to weaken opposition parties through defections and legal battles could backfire.

“Nothing fails like success. Be very careful, because sometimes complacency can spring surprises,” he said.

Mohammed-Baba rejected suggestions that the North remained a unified voting bloc capable of determining election outcomes on its own.

“No one region can determine on its own the outcome of a presidential election, and the North has never been able to do so alone, outside of military rule,” he said.

With rising fuel prices, increasing numbers of out-of-school children and persistent attacks by bandits in parts of the North-West, Mohammed-Baba maintained that Nigerians were searching for leaders with practical solutions to the country’s challenges.

“Is there anybody offering an alternative now?” he asked. “I don’t see anything.”