Nigeria’s debt situation is drawing fresh concern as the federal government adopts a new borrowing approach that experts say could create more problems down the line, even if it helps in the short term.
As of April 2026, Nigeria has massively increased its borrowing plans, with the National Assembly approving a $6 billion (approx. N8.4 trillion) foreign loan request to fund the 2026 budget.
Additionally, the 2026 borrowing plan was hiked by N11.31 trillion to a total of N29.2 trillion due to a ballooning budget deficit, bringing total projected public debt to around N155 trillion. The $6 billion is in external loans.
The package includes a $5 billion Total Return Swap (TRS) deal with First Abu Dhabi Bank and a $1 billion facility from UK Export Finance.
The UK-backed loan will fund the upgrade of Lagos and Tin Can Island ports. But it is the $5 billion TRS deal that is attracting the most attention, as it signals a shift away from Nigeria’s usual Eurobond borrowing to more complex, privately arranged financing.
