President Bola Ahmed Tinubu has requested the National Assembly’s approval to obtain $2.3 billion in external loans to help finance Nigeria’s 2025 budget deficit, refinance maturing debts, and sustain ongoing fiscal reforms.
In a letter transmitted to the House of Representatives, the President explained that the proposed borrowing will be raised through Eurobonds, syndicated loans, bridge financing, or facilities from multilateral and bilateral partners.
The move, he said, is part of the federal government’s strategy to stabilise public finances, strengthen foreign reserves, and manage debt obligations efficiently.
Tinubu also sought approval to issue a $500 million sovereign Sukuk, marking another step in the government’s effort to deepen the domestic capital market and attract Islamic finance investors.
The President’s latest request falls within the external borrowing framework already approved by the Senate, which includes $1.84 billion in the 2025 Appropriation Act.
The administration hopes to use part of the new facility to refinance a $1.118 billion Eurobond maturing in November 2025, thereby avoiding repayment pressures that could destabilise the economy.
However, the proposed loan has sparked renewed debate over Nigeria’s rising external debt, currently exceeding $42 billion.
Economic analysts warn that increased borrowing could worsen the debt-service-to-revenue ratio, already among the highest in Africa.
Yet government officials maintain that the borrowing plan remains within sustainable limits and is vital to fund key infrastructure projects, stimulate growth, and protect essential public services amid dwindling revenue.
The request comes as the Tinubu administration intensifies efforts to restore investor confidence through reforms in energy pricing, exchange-rate unification, and fiscal discipline.
The National Assembly is expected to deliberate on the borrowing plan in the coming weeks, a decision that could shape Nigeria’s fiscal direction in 2025.