Nigeria borrows $1.08bn in foreign loans to cover 2024 budget gap
The Federal Government, led by Bola Tinubu, secured $1.08bn in foreign loans in 2024 to finance budget deficits and key development projects. The loans, sourced from multilateral, bilateral, and commercial lenders, come amid ongoing revenue challenges and rising debt service costs. As of December 31, 2024, Nigeria’s total public debt reached $94.2bn, with external debt making up nearly half of that figure. Experts have raised concerns about the sustainability of this borrowing, especially given reported revenue surpluses.
TLDR
- The Federal Government obtained $1.08bn in foreign loans in 2024, mainly from multilateral sources, according to the Budget Office’s fiscal report released on June 5, 2025.
- Multilateral loans made up 55.7% ($600m) of new external borrowing, while commercial loans (Eurobonds and syndicated) accounted for about 40%.
- Nigeria’s total public debt hit $94.2bn by December 31, 2024, with external debt at $45.7bn and domestic debt making up the rest.
- Debt servicing consumed N13.12tn in 2024, representing 46% of government spending and 77.5% of retained revenue.
- Economist Aliyu Ilias criticized the borrowing, arguing that reported revenue surpluses under Bola Tinubu should have reduced the need for new loans.
