QUESTIONS have been asked regarding how much the Nigerian government under President Bola Tinubu has borrowed from local and internationa sources since he became president on May 29, 2023.
Just on Tuesday, September 5, President Tinubu addressed stakeholders of the Buhari Organisation who visited him at the Presidential Villa in Abuja. He Tinubu boasted, “Today I can stand here before you to brag: Nigeria is not borrowing. Nigeria is no longer borrowing any dime from local banks to run the economy. We have met our revenue target for the year and we met it in August.”
However, what is missing in the narrative is that Mr Tinubu still borrows today as can be seen in the Economy Post‘s story, through the weekly open market operations and biweekly treasury bills, including a monthly savings bonds.
The last time the Debt Management Office (DMO) released Nigeria’s debt stock was in the first quarter (March) 2025, which does not include some of the recent borrowing of the Tinubu-led government in the last six months.
Tinubu’s debt
In his entire 8 years in Aso Rock, former President Buhari borrowed N75.26 trillion from various sources, including from China. However, President Tinubu has eclipsed that figure in just 28 months, borrowing N98.65 trillion, mainly from international sources. With the recently repaid $3.4 billion International Monetary Fund (IMF) loan, Tinubu’s total net loans currently stand at N93.5 trillion.
READ ALSO: After World Bank facility, Tinubu eyes new loan, debt hits N88.6trn
President Tinubu had borrowed N96 trillion in his 2 years in office, as reported by Economy Post, but is now requesting fresh $1.75 billion from the World Bank, which is equivalent to N2.65 trillion. If the World Bank grants the loan to Nigeria, President Tinubu’s loan in 28 months of his administration will rise to N93.5 trillion.
This makes him the president with the highest debt profile in Nigeria’s history. In fact, the loans taken by the current administration is the highest of any single government in the nation’s history.
The Punch reported on Thursday that the World Bank could approve loans totalling $1.75 billion before the end of the year to support Nigeria’s agriculture value chain, digital infrastructure, health security and small businesses.
“When you hear from President Tinubu that he has met his revenue target without borrowing one kobo from local banks, he means that he prefers borrowing from international institutions. The question is this, why are you borrowing heavily externally when you have met your revenue target?” asked a United Kingdom-based finance lecturer, Dr Matthew Onyemaechi.
Tinubu’s expensive loans
President Tinubu’s administration is raising the nation’s debt profile as most of his loans are external in nature. Apart from the proposed $1.75 billion from the World Bank, Mr Tinubu had, in October 2024, borrowed a total sum of $6.45 billion from the same institution, according to a document seen on the global lender’s website.
Daily Trust reported that President Tinubu borrowed over N13.21 trillion ($8billion) from the World Bank for different developmental projects in 20 months.
This is in addition to $500 million borrowed from the Africa Development Bank (AfDB) and another $500 million loan from the African Development Bank Group. Mr Tinubu had also borrowed from international investors through Eurobonds. His administration issued a $1.7 billion Eurobond on December 3, 2024, which was oversubscribed 5.4 times. It also issued another $500 million Eurobond in 2024.
READ ALSO: Five facts about Nigeria’s $3.4bn loan repayment to IMF
Borrowing more in foreign currency is one reason why President Tinubu’s debt is rising faster than that of his predecessor in naira terms. The naira has devalued by over 50 percent since Mr Buhari left office.
As at the time President Buhari was leaving office on May 29, 2023, the exchange rate was less than N800/$. Data from FMDQ Securities Exchange show that the naira exchanged at 775 to a dollar on May 26, 2023. Mr Tinubu came to power on May 29, 2023. Hence some of former President Buhari’s external loans were taken when a dollar exchanged at less than N800.
However, President Tinubu, now in power, takes some of his loans at a point when the exchange rate is at over N1,500 to a dollar. The exchange rate is currently at over N1,500/$ today.
But the Tinubu’s administration recently repaid Nigeria’s $3.4 billion borrowed from the International Monetary Fund (IMF), which is a big win. The actual name of the facility is the Rapid Financing Instrument (RFI), which was given to Nigeria in 2020 due to the impact of COVID-19 on oil prices. The cost of the loan was 1 percent. This is a major win for the administration,, say economists.
However, this hasn’t stopped the government from borrowing.
