Government debt payments used about 65% of Nigeria’s revenue in the first half of 2026, as President Bola Ahmed Tinubu argues that new borrowing should be tied to infrastructure investment. The Debt Management Office (DMO) reported public debt was ₦166.788 trillion ($120.933 billion) as of June 30, 2026.
In an essay published Oct. 29, Tinubu said financing terms should reflect how long infrastructure remains useful. He credited reforms since 2023, including ending the petrol subsidy, unifying the exchange rate and changing tax rules, with helping restore macroeconomic balance.
The DMO’s debt total included ₦75.198 trillion in external debt and ₦91.590 trillion in domestic debt. It covers the federal and state governments and the Federal Capital Territory. The Federal Ministry of Finance dashboard put debt service at about 65% of revenue for the first half of the year.
Tinubu named the Trans-Sahara Superhighway, the Sokoto–Badagry Superhighway and the Lagos–Calabar Coastal Highway among his priorities. He also cited power-grid improvements, commercial ports in Lagos, hospitals, education and vocational training. He said businesses and communities along the planned routes could benefit from better connections.
Tinubu projected that the Lagos–Calabar highway could lower logistics costs along its corridor by 15% to 20% and add as much as 2% to gross domestic product. Those figures are estimates in his essay, not measured results. He wrote, “Securing financing is not the achievement,” and said the test would be whether projects are completed and deliver value.
The National Bureau of Statistics (NBS) reported real GDP growth of 4.43% year over year in the second quarter of 2026. Its September data showed annual headline inflation at 14.63%, down from 20.98% a year earlier, while food inflation was 19.59%.
The National Assembly Library Trust Fund said the Senate referred the 2026–2027 external borrowing plan on Oct. 27 to the Senate Committee on Local and Foreign Debts. The trust fund listed the request’s dollar component at $20.52 billion. The panel is due to report within one week of the referral, continuing the Senate’s review of Tinubu’s borrowing request.
