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Tinubu adds N8.4 trillion to Nigeria’s debt stock
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
KACRAN: Insecurity in North can end within 45 days if leaders are committed
By Philippine Duru
philippineobetoduru@gmail.com
08034905774

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has declared that the worsening insecurity in the North West and North Central regions of the country can be brought to an end within 45 days if the Federal Government, state governors and other stakeholders demonstrate sufficient political will and commitment.
The association said the two regions possess the human resources, political influence, traditional institutions and leadership capacity required to resolve the security challenges that have claimed numerous lives, displaced communities and crippled agricultural activities.
KACRAN’s National President, Hon. Khalil Mohd Bello, made the assertion in a statement expressing concern over the persistent killings, banditry, cattle rustling and destruction of property across northern Nigeria.
According to him, the association has developed a peace proposal that could restore stability to the troubled regions within 45 days if implemented with the full cooperation of federal and state authorities.
He explained that the proposed timeline would involve two weeks of consultations and engagement with relevant groups, followed by one month of decisive measures to implement the peace agreement.
Bello lamented that northern Nigeria, once celebrated for its unity, peaceful coexistence, generosity and political advancement, had become a theatre of violence where armed groups terrorise innocent citizens.
He said the activities of bandits and other armed groups had forced thousands of families to abandon their ancestral homes, prevented farmers from accessing their farmlands and resulted in widespread livestock theft.
The KACRAN president argued that the continued deterioration of security was particularly disturbing considering the calibre of political, military, traditional and religious leaders produced by the region.
He said: “KACRAN strongly and respectfully believes that with the support and cooperation of the Federal Government and the concerned state governments, the North has the full capacity and ability to end insecurity in the North West and North Central within 45 days, if truly committed.”
Bello maintained that the regions had produced several Nigerian presidents, military generals, senior security officers, experienced administrators and influential politicians capable of contributing meaningfully to peacebuilding efforts.
He also pointed to the regions’ population and electoral importance, stressing that northern political leaders had a responsibility to protect the lives and livelihoods of their constituents.
According to him, restoring peace before the 2027 general elections would enable displaced residents to return to their communities and participate in civic activities, including voting.
He warned that allowing insecurity to persist would further undermine Nigeria’s food security, given the strategic importance of the North West and North Central to agricultural production.
Bello said the regions’ traditional rulers, religious leaders and political stakeholders should be mobilised to facilitate meaningful dialogue with armed groups and other parties involved in the conflicts.
Citing developments in Kaduna and Katsina states, he argued that dialogue had demonstrated its potential to resolve even deeply entrenched security challenges.
The association particularly commended Kaduna State Governor, Uba Sani, for his peace initiatives in Birnin Gwari, which it described as an example of how engagement with relevant stakeholders could help address longstanding conflicts.
Bello praised the governor’s commitment to peace, unity and economic development, urging his counterparts in the North West and North Central to emulate his approach.
He said: “We wish to most sincerely express our deepest appreciation to His Excellency, Malam Uba Sani, the Executive Governor of Kaduna State, for his genuine love for the peace, unity and economic development of his people.
“We respectfully call on North West and North Central governors to emulate his good example.”
KACRAN also questioned the emphasis on establishing state police as a solution to insecurity, arguing that governments should instead prioritise conflict resolution and sustainable employment opportunities for young people.
The association expressed concern about the long-term sustainability of security-related employment, particularly in the face of changing government revenues.
It advocated massive investment in agriculture, livestock development, fisheries, industries and commercial activities as more sustainable approaches to tackling unemployment and addressing some of the underlying causes of insecurity.
Bello maintained that armed groups operating across the two regions could be reached through coordinated peace initiatives involving traditional institutions, government authorities and local communities.
He argued that relying exclusively on military operations had failed to produce the desired results despite the substantial public resources committed to security interventions.
According to him, dialogue should complement security operations, while firm action should be taken against armed groups that reject genuine peace initiatives.
The association also warned against the proliferation of ethnic-based vigilante organisations, saying such groups could deepen divisions and trigger retaliatory violence.
Bello said the establishment of vigilante groups along ethnic lines might encourage rival communities to form similar armed organisations, thereby complicating an already fragile security situation.
He condemned the recent killings in Plateau, Taraba and Zamfara states, as well as other attacks involving the destruction of property and rustling of livestock.
KACRAN further urged northern leaders not to postpone decisive action on insecurity until the 2027 general elections.
It maintained that resolving the security challenges before the elections would create a more favourable environment for economic recovery and enable future administrations to concentrate on development.
Drawing a comparison with Rwanda’s recovery from the 1994 genocide, Bello said northern leaders could similarly mobilise the political will and collective determination necessary to restore peace.
He argued that the region’s abundant human and natural resources made continued insecurity unacceptable.
The association consequently appealed to the Federal Government and governors of the affected states to adopt its proposed peace framework without further delay.
Bello said: “It is not in the best interest of the North to continue to live with insecurity while waiting for the next election cycle in 2027.
“Our security challenge should be addressed now, so that whoever comes to power in 2027 can continue and expand efforts at building our economy through massive job creation, youth employment, livestock development, fisheries, arable farming and boosting commercial activities.”
He urged the authorities to provide the necessary political, financial and institutional support for the immediate implementation of the association’s proposal.
The KACRAN president reiterated that while dialogue should remain central to the peace process, security agencies must take decisive action against bandits who refuse to embrace peace.
He expressed confidence that a coordinated approach involving federal and state governments, traditional rulers, religious leaders, security agencies and community stakeholders could bring lasting stability to the troubled regions.
News
KACRAN urges northern governors to adopt Buni’s economic blueprint, seeks FG’s soft loans
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
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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