President Bola Ahmed Tinubu has asked the Senate to approve a new external borrowing plan totalling $2.3 billion.
The fresh loan is aimed at supporting the implementation of the 2025 budget, refinancing maturing Eurobonds, and diversifying Nigeria’s debt portfolio.
The president’s request was contained in a letter read on the floor of the Senate during Wednesday’s plenary by Senate President Godswill Akpabio.
Tinubu explained that the new borrowing forms part of the $9.27 billion anticipated in the 2025 fiscal framework to finance the budget deficit, with $1.84 billion expected to come from external sources at an assumed exchange rate of ₦1,500 to the dollar.
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According to the letter, the loan will be sourced through a mix of Eurobonds, syndicated loans, bridge financing, or direct credit from multilateral lenders — a strategy the president said was designed to optimise borrowing costs and manage risks effectively.
A major component of the plan is the refinancing of a $1.118 billion Eurobond issued in 2018 at a coupon rate of 7.625 per cent, which matures in November 2025. Tinubu described the move as “a standard practice in debt capital markets,” adding that refinancing through Eurobonds or syndicated loans would “guarantee debt sustainability and boost investor confidence.”
He stressed that refinancing maturing obligations was a routine part of debt management and vital to preserving Nigeria’s fiscal credibility. The president also noted that the request complied with Sections 21(1) and 27(1) of the Debt Management Office Act and had already received Federal Executive Council (FEC) approval.
The letter further detailed the breakdown of the borrowing request: “To raise external capital in the sum of USD2,347,465,000.00 comprised of New External Borrowing in the 2025 Appropriation Act (USD1,229,113,000.00) and refinancing of maturing Eurobonds (USD1,118,352,000.00), through any of the following option(s): issuance of Eurobonds, bridge finance facility from bookrunners, loan syndication and direct borrowing from international financial institutions.”
Following the reading of the correspondence, Akpabio referred the request to the Senate Committee on Local and Foreign Debt for further legislative scrutiny and directed the panel to submit its report within one week.
The latest borrowing proposal comes barely four months after Tinubu sought legislative approval for $21.5 million and ¥15 billion in loans, alongside a €65 million grant, as part of the government’s 2025–2026 external borrowing plan.
