President Bola Tinubu has sought the approval of the House of Representatives for a $2.3 billion external borrowing plan to finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The loan, which the president said will be sourced from a combination of Eurobond issuance, loan syndication, bridge financing, and credit from international financial institutions, came on the heels of a series of foreign loans by the Tinubu administration.
In a letter read by the Speaker of the House, Tajudeen Abbas, on Tuesday, October 7, the President explained that $1.2 billion of the amount would support the implementation of the 2025 Appropriation Act, while $1.1 billion would be used to offset Eurobonds, which are due for repayment.
Tinubu noted that Nigeria had made progress in raising funds domestically through the Sukuk bond programme, which generated over ₦1.39 trillion between 2017 and May 2025 for key road projects, adding that, “domestic borrowing alone could not close the existing infrastructure and financing gaps, hence the need to turn to external sources.”
The President also requested the legislature’s approval to issue a sovereign Sukuk bond worth up to $500 million, with or without a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), an arm of the Islamic Development Bank. He explained that proceeds from the Sukuk would partly refinance more expensive debts, while the balance would be channelled into pre-selected infrastructure projects.
The Senate had earlier in July 2025 approved a $21 billion borrowing plan to finance key sectors, including health, education, agriculture, and housing. The same framework also covered a €4 billion facility, ¥15 billion from Japan, a $65 million grant, and $2 billion in local dollar-denominated loans.
Also in July, Tinubu formally requested approval from the National Assembly to borrow $347 million under the Federal Government’s 2025–2026 external borrowing plan, citing urgent infrastructure and telecommunications needs for the decision. The request came a day after the Senate approved $21 billion borrowing framework for the same fiscal period.
The various loan requests have ballooned Nigeria’s public debt to over $108 billion according to data from the Debt Management Office (DMO), showing the country relies on loans to sustain fiscal operations amid revenue shortfalls.
Comments are closed.