President Bola Ahmed Tinubu has requested Senate approval for a $2.3 billion international loan initiative.
This additional funding is intended to aid the execution of the 2025 budget, cover upcoming Eurobond repayments, and broaden the composition of Nigeria’s external debts.
The proposal appeared in a formal communication presented during Wednesday’s Senate session by Senate President Godswill Akpabio.
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Tinubu outlined that this borrowing aligns with the $9.27 billion projected in the 2025 financial outline to address the budget shortfall, including $1.84 billion from overseas at an estimated rate of ₦1,500 per dollar.
As detailed in the document, the funds would be obtained via options such as Eurobonds, coordinated loans, temporary financing, or loans directly from global development banks—a method Tinubu highlighted for minimizing expenses and handling uncertainties.
A key element involves reissuing a $1.118 billion Eurobond from 2018, which carries a 7.625 percent interest rate and is due in November 2025. Tinubu called this “a standard practice in debt capital markets,” noting that reissuance via Eurobonds or coordinated loans would “guarantee debt sustainability and boost investor confidence.”
He underscored that handling due debts through refinancing is a common aspect of fiscal oversight, essential for upholding Nigeria’s economic reliability. The request also adheres to Sections 21(1) and 27(1) of the Debt Management Office Act and has gained endorsement from the Federal Executive Council.
The communication specified the loan details: “To raise external capital in the sum of USD2,347,465,000.00 comprised of New External Borrowing in the 2025 Appropriation Act (USD1,229,113,000.00) and refinancing of maturing Eurobonds (USD1,118,352,000.00), through any of the following option(s): issuance of Eurobonds, bridge finance facility from bookrunners, loan syndication and direct borrowing from international financial institutions.”
After the letter was announced, Akpabio assigned it to the Senate Committee on Local and Foreign Debt for detailed review and instructed them to deliver findings in one week.
This new financial ask follows closely on the heels of Tinubu’s earlier bid four months ago for $21.5 million and ¥15 billion in borrowings, plus a €65 million aid package, within the 2025–2026 overseas funding strategy.