President Bola Tinubu has sought the Senate’s approval for a new external loan of $2.3 billion, aimed at supporting key components of the 2025 fiscal plan.
The President’s request was conveyed in a letter read by Senate President Godswill Akpabio during Wednesday’s plenary session.
According to the letter, the proposed loan will fund the implementation of the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s debt portfolio by introducing Islamic finance instruments.
Tinubu stated, “The 2025 fiscal framework anticipates $9.27bn in new borrowings to address the budget deficit, of which $1.84bn is earmarked for external sources at an assumed exchange rate of N1,500 to the dollar.”
He further explained that the funds would be raised through a mix of financial instruments, including Eurobonds, syndicated loans, bridge financing, or direct loans from multilateral institutions, to ensure optimal cost efficiency and risk management.
A major component of the plan, the President noted, involves refinancing Nigeria’s $1.118 billion Eurobond, issued in 2018 at a 7.625 percent coupon rate and maturing in November 2025.
“This is a standard practice in debt capital markets,” Tinubu wrote.
“Refinancing through Eurobonds or syndicated loans will guarantee debt sustainability and boost investor confidence.”
He emphasized that refinancing maturing obligations was a normal debt management strategy essential to maintaining Nigeria’s fiscal credibility and market stability.
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