Inside Nigeria’s Mounting Debt Crisis: How Tinubu’s Government Borrowed Trillions For Education, Welfare, Power, Roads And “Economic Stabilisation”

Investigation reveals Nigeria’s public debt surged by over N72 trillion in less than three years amid rising concerns over transparency, debt servicing burden, and the true impact of multiple foreign and domestic loans

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By Baron Eloagu / ABUJA, Nigeria / May 14, 2026

Nigeria’s public debt profile has expanded at an unprecedented pace under the administration of President Bola Ahmed Tinubu, with fresh analysis of official borrowing records showing that the country accumulated more than N72 trillion in additional debt between 2023 and the end of 2025.

An investigation by A1NEWS International, based on publicly available loan approvals, budget documents, World Bank commitments, National Assembly authorisations, and multilateral financing records, reveals that billions of dollars have been borrowed for a wide range of programmes spanning education, women empowerment, healthcare, agriculture, infrastructure, climate resilience, economic stabilisation, and social welfare interventions.

While government officials insist the loans are necessary to stabilise the economy and finance critical development projects, economists and public policy analysts are increasingly questioning the transparency, sustainability, and measurable impact of several borrowing initiatives.

Nigeria Emerges As One Of World Bank’s Largest Borrowers

Under the current administration, Nigeria has secured approximately $9.65 billion in loans from the World Bank alone between 2023 and 2025.

Available records indicate that in 2023, Nigeria obtained about $2.7 billion from the lender for projects including renewable energy expansion, adolescent girls’ education, women-focused programmes, and power sector recovery initiatives.

Among the major facilities approved were:

$750 million for renewable energy expansion
$700 million for adolescent girls’ secondary education
$500 million for the Nigeria for Women programme
$750 million for power sector recovery

In 2024, the country secured another $4.25 billion for programmes covering healthcare, climate resilience, agricultural marketing, rural roads, primary healthcare reforms, economic stabilisation, and resource mobilisation reforms.

By 2025, fresh approvals amounting to $2.695 billion were reportedly obtained for education, nutrition, broadband expansion, healthcare security, MSME financing, vulnerable household support, and NG-CARES interventions.

The cumulative approvals have now positioned Nigeria as the largest International Development Association (IDA) borrower in Africa and among the top three globally.

Questions Over Loan Transparency And Project Outcomes

Despite the scale of the borrowings, concerns are mounting over vague project descriptions and limited public accountability regarding implementation outcomes.

Several analysts contacted by A1NEWS International questioned the practical definitions and measurable deliverables attached to categories such as “economic stabilisation,” “human capital strengthening,” “climate resilience,” and “power sector recovery.”

Critics argue that while such development financing frameworks are common within multilateral institutions, Nigerian authorities have not sufficiently explained how borrowed funds directly translate into visible improvements in electricity supply, healthcare delivery, education standards, or poverty reduction.

Economic experts also raised concerns about repeated borrowings for social intervention programmes while inflation, unemployment, food insecurity, and infrastructure deficits continue to worsen.

Fuel Subsidy Removal Triggered Additional Borrowing

Records further show that the Federal Government secured an additional $800 million in June 2023 to cushion the impact of fuel subsidy removal following the abrupt deregulation policy introduced shortly after Tinubu assumed office.

Other external borrowings identified include:

$1.5 billion for economic stabilisation initiatives
$500 million from the African Development Bank for energy reforms
$1 billion through UK Export Finance for Lagos Port rehabilitation
$5 billion facility from First Abu Dhabi Bank for deficit financing
$400 million for agriculture and digital economy projects
$516 million from Deutsche Bank for the Sokoto-Badagry Super Highway

In addition, the National Assembly approved a fresh external borrowing plan valued at $21.5 billion for the 2025–2026 fiscal cycle.

The planned facilities are expected to finance infrastructure, security, healthcare, education, agriculture, employment, and water projects.

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Domestic Debt Also Surges

Apart from foreign loans, Nigeria’s domestic borrowing profile has expanded sharply.

Data compiled from Debt Management Office records and fiscal policy documents show that the government securitised N22.7 trillion in Central Bank Ways and Means advances in 2023 alone.

Further domestic borrowing figures include:

N7.81 trillion raised through bonds and treasury bills in 2024
N8.54 trillion in 2025
N10.07 trillion projected for 2026
N757 billion bond issuance for pension liabilities
Multiple deficit financing requests exceeding N1 trillion

Analysts warn that continuous reliance on domestic debt instruments may intensify pressure on inflation, interest rates, and private sector credit access.

Debt Servicing Consumes Majority Of Government Revenue

Perhaps the most alarming aspect of Nigeria’s debt trajectory is the rapidly increasing cost of servicing the obligations.

Available fiscal records indicate that debt servicing consumed:

N7.8 trillion in 2023
N13.12 trillion in 2024
Approximately $9.9 billion in external debt servicing between June 2023 and August 2025

Current estimates suggest that more than 80 percent of federal government revenue is now directed toward debt servicing obligations.

Financial analysts warn that such a trend significantly limits fiscal space for critical sectors including healthcare, education, infrastructure, security, and public sector welfare.

Government Defends Borrowing Strategy

Government officials have repeatedly defended the borrowing pattern, insisting that many of the loans are concessional facilities with long repayment periods and low interest rates designed to support structural reforms and infrastructure development.

Authorities also argue that several of the programmes inherited funding gaps from previous administrations and require sustained financing to avoid economic collapse and institutional breakdown.

Supporters of the administration further maintain that projects tied to healthcare, education, women empowerment, agriculture, digital economy, and climate resilience are essential components of long-term national development.

Rising Public Anxiety Over Nigeria’s Debt Future

However, public anxiety continues to grow over whether the country is accumulating debts faster than it can generate sustainable revenue and economic growth.

Economists say the major concern is no longer merely the volume of borrowing, but whether Nigerians can clearly identify corresponding improvements in living conditions and national productivity.

Transparency advocates are now calling for more detailed public disclosures, independent audits of loan-funded projects, and periodic impact assessments to determine whether borrowed funds are achieving their intended objectives.

As Nigeria’s debt profile approaches historic levels, the debate surrounding the Tinubu administration’s borrowing strategy is likely to intensify in the coming months.

While the government maintains that the loans are necessary for national recovery and development, critics insist that citizens deserve clearer explanations, stronger accountability mechanisms, and visible results from projects financed with trillions of naira in borrowed funds.

With debt servicing now consuming a substantial portion of government revenue, experts warn that Nigeria may soon face difficult fiscal choices unless economic growth, revenue generation, and project transparency improve significantly.