Tinubu Seeks National Assembly’s Approval To Borrow $2.35bn
President Bola Tinubu has asked the National Assembly to approve his administration’s plan to borrow $2.35 billion from external sources to finance part of the 2025 budget and refinance a maturing Eurobond.
In a letter addressed to the Speaker of the House of Representatives, Tajudeen Abbas, and read during plenary on Tuesday, the President explained that $1.23 billion of the loan would be used to fund the deficit in the 2025 budget, while $1.12 billion would be used to refinance a Eurobond maturing on November 21.
Tinubu said the external borrowing plan was in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new external loans or refinancing arrangements.
He added that the government intends to raise the funds through one or a combination of instruments including Eurobonds, syndicated loans, bridge financing, or direct borrowing depending on prevailing market conditions and investor appetite.
The President also sought approval to issue a $500 million sovereign sukuk in the international capital market, a move aimed at broadening the nation’s financing options and attracting new categories of investors.
Tinubu assured lawmakers that the proposed borrowings were within sustainable limits and aligned with his administration’s medium-term debt strategy, which seeks to balance fiscal consolidation with growth-focused spending.
The request comes amid growing fiscal pressures on the government, as Nigeria continues to seek ways to bridge its funding gaps while sustaining reforms aimed at stabilizing the economy.
If approved, the new loans will help Nigeria meet its external debt obligations and finance key sectors of the economy in line with the 2025 Appropriation Act.
