During Wednesday’s plenary session, President Bola Ahmed Tinubu formally requested Senate approval for a new $2.3 billion external loan to support key fiscal and debt management initiatives.
The request was conveyed in a letter read aloud by Senate President Godswill Akpabio on the Senate floor.
According to the president’s letter, the loan is intended to fund part of the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s borrowing options by including Islamic finance products among others.
He stated that the approved 2025 fiscal strategy anticipates $9.27 billion in total new borrowings to bridge the budget deficit, with $1.84 billion to be sourced externally.
The assumptions include an exchange rate of ₦1,500 to the US dollar.
“The external borrowing will be raised through Eurobonds, syndicated loans, bridge financing, or direct funding from multilateral institutions,” Tinubu explained, emphasizing that the approach is aimed at cost optimization and risk management.
A major component of the loan plan is the refinancing of a $1.118 billion Eurobond, originally issued in 2018 at an interest rate of 7.625%, which matures in November 2025.
The president noted that refinancing maturing debts through capital markets or loan syndicates is a standard international practice.
“This ensures continued access to capital, enhances investor confidence, and supports sustainable debt management,” he wrote.
Tinubu stressed that managing upcoming obligations efficiently is crucial to maintaining Nigeria’s fiscal reputation and creditworthiness.
