The National Assembly has approved President Bola Tinubu’s request to secure an external loan of $2.34 billion to fund the 2025 Appropriation Act and refinance maturing Eurobonds.
The approval, granted by both the Senate and House of Representatives, follows the adoption of reports from their respective committees on local and foreign debts.
According to the report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, the borrowing plan includes $1.22 billion in new external loans and $1.11 billion for refinancing due obligations. The loans will be sourced through Eurobonds, syndicated loans, bridge financing, or direct borrowing from international financial institutions.
The plan aims to close Nigeria’s budget deficit and ensure timely repayment of maturing Eurobonds scheduled for November 2025. Lawmakers also approved the issuance of a $500 million debut sovereign Sukuk on the international capital market to fund critical infrastructure projects across the country.
Explaining the rationale behind the approval, Senator Mohammed Sani Musa, Chairman of the Senate Committee on Finance, said the request was necessary to ensure effective implementation of the 2025 budget. “It is very needful that we give approval to this request so that the 2025 Appropriation Act will be given the necessary funding,” he said.
Senator Adetokunbo Abiru, who chairs the Senate Committee on Banking, added that refinancing part of the loan was a standard global practice. “This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing,” he explained.
While some lawmakers expressed concern about Nigeria’s growing debt burden, supporters argued that the borrowing plan was essential to sustain key government programmes and avoid default. The Debt Management Office (DMO) is expected to coordinate the process to ensure transparency and cost-effective debt management.
