Why Nigeria Keeps Borrowing: $6bn Loan Push Sends Debt to a Record $104bn

Nigeria’s National Assembly approved a 17% increase in the 2026 budget to $49.38 billion (₦68.3 trillion) and a new $6 billion external loan package. This decision drove public debt to $103.94 billion by September 2025, according to the Debt Management Office. Persistent revenue shortfalls, subsidy removals and ongoing reforms have widened budget gaps. Infrastructure backlogs and low project execution rates mean new loans often cover old obligations rather than deliver finished projects. Heavy debt servicing now claims nearly half of projected revenue, crowding out spending on education, health and poverty reduction. Analysts warn that without stronger non-oil tax mobilisation, transparent governance and disciplined spending, borrowing risks becoming a deepening debt trap.

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