Tinubu seeks Senate approval for fresh $2.3bn external loan

President Bola Ahmed Tinubu has requested the approval of a new $2.3 billion external loan from the Senate to finance key components of the 2025 Appropriation Act, refinance maturing Eurobonds, and broaden Nigeria’s debt portfolio to include Islamic finance instruments.

The request was conveyed in a letter read by Senate President Godswill Akpabio during Wednesday’s plenary session.

According to the President, the proposed borrowing is part of the 2025 fiscal framework, which projects $9.27 billion in new loans to fund the budget deficit.

Out of this amount, $1.84 billion is expected to come from external sources, based on an exchange rate assumption of ₦1,500 to the dollar.

Tinubu explained that the new loan would be raised through a mix of financial instruments, including Eurobonds, syndicated loans, bridge financing, or direct borrowing from multilateral institutions, in order to reduce borrowing costs and manage associated risks efficiently.

A major component of the plan, he noted, is the refinancing of Nigeria’s $1.118 billion Eurobond, which was issued in 2018 at a coupon rate of 7.625% and is due for repayment in November 2025.

“This is a standard practice in global debt capital markets. Refinancing through Eurobonds or syndicated loans will help ensure debt sustainability and strengthen investor confidence,” the President stated.

Tinubu stressed that the refinancing of maturing obligations is part of routine debt management, describing it as essential for maintaining fiscal credibility and ensuring the government can meet its financial commitments without disrupting economic stability.