President Bola Tinubu has asked the House of Representatives to approve a $2.34 billion external loan plan.
The funds will support the 2025 budget and refinance Nigeria’s maturing Eurobonds.
President Bola Ahmed Tinubu has asked the House of Representatives to approve the Federal Government’s plan to secure $2.34 billion in external loans to help finance the 2025 budget deficit and refinance maturing Eurobonds.
The request was contained in a letter dated September 22, 2025, and read on the House floor by Speaker Abbas Tajudeen. Tinubu explained that the proposed borrowing is in line with the Debt Management Office (DMO) Act of 2003, which mandates legislative approval for government borrowing plans.
According to the President, the loan will include $1.23 billion in new external borrowing to support the 2025 budget and $1.12 billion to refinance Eurobonds set to mature in November 2025. In addition, the government plans to issue a $500 million Sovereign Sukuk in the international capital market.
Tinubu stated that the funds will be sourced through a mix of Eurobonds, syndicated loans, bridge financing, or direct loans from global financial institutions, depending on market conditions and the cost of borrowing. He said the approach would help the government balance fiscal stability with access to sustainable funding options.
He further noted that refinancing the existing Eurobond aligns with global financial management standards, ensuring the government avoids the risks associated with default or unfavorable rollover costs. The proceeds from the planned Sovereign Sukuk, he added, would be channeled toward the repayment of high-interest debts and the development of key infrastructure projects critical to economic growth.
The President’s request is expected to be reviewed by the House Committees on Finance, Appropriations, and National Planning before a formal approval is granted. If approved, the borrowing plan will form part of the government’s broader fiscal strategy to strengthen Nigeria’s financial position and maintain macroeconomic stability.
