President Bola Ahmed Tinubu has asked the Senate to approve a new $2.3 billion external loan to finance key aspects of the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s debt portfolio through Islamic finance instruments.
The request was contained in a letter read by Senate President Godswill Akpabio during plenary on Wednesday.
According to the President, the proposed borrowing is part of the 2025 fiscal framework, which includes plans to raise $9.27 billion in new loans to bridge the budget deficit.
Of that amount, $1.84 billion is expected to come from external sources, based on an exchange rate benchmark of ₦1,500 to the dollar.
Tinubu explained that the fresh loan would be sourced through a combination of Eurobonds, syndicated loans, bridge financing, and multilateral borrowings, with the goal of minimizing borrowing costs and managing risks more effectively.
A key element of the plan, he said, is the refinancing of Nigeria’s $1.118 billion Eurobond, issued in 2018 at a 7.625% coupon rate and scheduled for repayment in November 2025.
“This is a standard practice in global debt capital markets,” Tinubu stated.
“Refinancing through Eurobonds or syndicated loans will help ensure debt sustainability and strengthen investor confidence.”
The President emphasized that refinancing maturing debt obligations is a routine component of prudent fiscal management, adding that it is essential for maintaining fiscal credibility and ensuring the government meets its financial commitments without destabilizing the economy.
