FG Plans N13tn Loan as Tinubu Presents N49.7tn 2025 Budget

President Bola Tinubu has presented a whopping N49.7 trillion budget for 2025, with a significant portion allocated for debt servicing. According to reports, the Federal Government plans to take out a massive N13 trillion loan to finance its expenditure ¹.

This move has raised concerns about Nigeria’s increasing debt burden. The country’s total public debt is projected to hit N118.37 trillion by the end of 2026, with debt servicing costs expected to gulp N29.92 trillion in three years.

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The proposed budget has allocated a significant chunk for debt servicing, with N10.07 trillion earmarked for domestic loans and N1.13 trillion for external debt. This has sparked worries about the country’s ability to meet its debt obligations.

Breakdown of the Proposed Budget

– Total budget: N49.7 trillion

– Debt servicing: N29.92 trillion

– Domestic loans: N10.07 trillion

– External debt: N1.13 trillion

The Federal Government has defended its decision to borrow more, citing the need to finance infrastructure projects and stimulate economic growth. However, experts have warned that the country’s debt burden is becoming unsustainable.

As the National Assembly begins to scrutinize the proposed budget, Nigerians will be watching closely to see how the government plans to manage its debt and deliver on its promises.