President Bola Ahmed Tinubu has formally requested the approval of the House of Representatives to secure an external loan of $2.347 billion to finance Nigeria’s 2025 budget deficit, refinance maturing Eurobonds, and support ongoing fiscal reforms.
The request, delivered in a letter read by Speaker Tajudeen Abbas during plenary, outlines a borrowing plan that includes $1.229 billion in new external loans and $1.118 billion to refinance Eurobonds maturing in November 2025. The funds are expected to be sourced through Eurobond issuance, loan syndications, bridge financing, or direct borrowing from international financial institutions.
“This borrowing is essential to maintain fiscal stability, manage debt obligations, and fund critical infrastructure projects,” the President stated in his letter.
President Tinubu emphasized that the move aligns with Nigeria’s broader fiscal strategy to diversify funding sources, deepen the capital market, and attract ethical investors. He also highlighted the success of domestic Sukuk issuances, which have raised ₦1.39 trillion since 2017 for road and bridge development.
While government officials maintain that the borrowing plan is within sustainable limits, critics have raised concerns about Nigeria’s rising external debt, which now exceeds $42 billion, and its impact on the country’s debt-service-to-revenue ratio.