President Bola Ahmed Tinubu has requested the approval of the National Assembly to obtain a fresh $2.3 billion external loan to finance part of Nigeria’s 2025 budget deficit and refinance maturing Eurobonds. The president made this known in a letter read by Speaker of the House of Representatives, Abbas Tajudeen, during the plenary session on Tuesday.
According to the breakdown of the request, $1.229 billion will be used to fund components of the 2025 Appropriation Act, while $1.118 billion is earmarked for the refinancing of existing Eurobond debts. Tinubu explained that the borrowing would be sourced through several options, including the issuance of new Eurobonds, bridge financing via bookrunners, loan syndications, and direct credit from international financial institutions.
The president also sought permission to issue a standalone sovereign Sukuk of up to $500 million, potentially supported by a guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). He noted that while previous Sukuk issuances had helped raise capital for infrastructure projects locally, external financing remained vital to address the nation’s growing funding needs and diversify its investor portfolio.
Tinubu emphasized that the proposed borrowing is part of a broader strategy to stabilize the economy, support infrastructure development, and strengthen fiscal sustainability. The request follows earlier approvals for a $21.5 billion borrowing plan covering 2025–2026, aimed at bridging funding gaps in key sectors such as agriculture, health, education, and transportation.
Meanwhile, economic observers have expressed concern over Nigeria’s increasing debt profile, which has surpassed $108 billion as of mid-2025. They cautioned that while the loans may provide temporary fiscal relief, the government must ensure the borrowed funds are effectively utilized to spur economic growth and avoid long-term debt pressure.
