- Tinubu Seeks House Approval for $2.3bn External Loan to Fund 2025 Budget
- Tinubu proposed that the borrowings be sourced through Eurobond issuances
- Tinubu urged lawmakers to pass a resolution authorising the external capital raise
President Bola Ahmed Tinubu has written to the House of Representatives, seeking approval to obtain approximately $2.3 billion in external loans to fund the 2025 budget deficit and refinance maturing Eurobonds.
Eko Hot Blog reports that the request was contained in a letter read by Speaker Abbas Tajudeen during Tuesday’s plenary session of the House.
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According to the President’s letter, the proposed borrowing, totalling $2,347,465,000, includes $1.2 billion in new external loans for implementing the 2025 Appropriation Act and $1.1 billion to refinance Eurobonds due for maturity.
Tinubu explained that the borrowing is part of efforts to strengthen Nigeria’s fiscal stability, attract foreign investment, and bridge infrastructure financing gaps.
“The federal government has recorded considerable success in the issuance of Sukuk in the domestic capital market for critical infrastructure development,” the President stated.
“Between September 2017 and May 2025, the Debt Management Office (DMO) has raised ₦1.39 trillion through Sukuk to fund key road projects. However, there is a need to complement these efforts by pulling resources from external sources to diversify funding options and deepen the federal government securities market.”
Tinubu proposed that the borrowings be sourced through Eurobond issuances, bridge financing, loan syndications, and direct borrowing from international financial institutions.
He also requested approval to issue a stand-alone sovereign Sukuk, potentially with a credit enhancement guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
“If the credit enhancement from ICIEC is utilised, 25 per cent of the proceeds may be applied to refinance relatively more expensive debt, while the remainder will finance pre-identified infrastructure projects,” the letter read.
Tinubu urged lawmakers to pass a resolution authorising the external capital raise, comprising both new loans under the 2025 Appropriation Act and funds to refinance maturing Eurobonds.
The proposal comes amid Nigeria’s continued reliance on borrowing to fund budget deficits. Earlier in 2025, the Senate approved a $21.5 billion external borrowing plan for 2025–2026 to support key sectors such as infrastructure, agriculture, health, and education.
In July, the National Assembly also approved an additional $347 million loan and ₦757 billion in pension bond arrears.
However, fiscal experts and opposition lawmakers have cautioned that the country’s rising debt profile, which reached over $108 billion by mid-2025, according to DMO data, poses a growing risk to long-term economic sustainability.
