Tinubu Seeks House Approval for $2.3bn Loan To Fund 2025 Budget

President Bola Ahmed Tinubu has asked the House of Representatives to approve a fresh $2.3 billion external loan aimed at closing Nigeria’s 2025 budget deficit and refinancing maturing Eurobonds.

The request, detailed in a letter read by Speaker Abbas Tajudeen during Tuesday’s plenary session, outlined a total borrowing plan of $2,347,465,000. 

According to the letter, $1.2 billion would be used to fund the 2025 Appropriation Act, while $1.1 billion would go toward refinancing Nigeria’s existing Eurobond obligations.

Tinubu explained that the borrowing plan aligns with his administration’s effort to strengthen Nigeria’s fiscal position and address critical funding gaps in infrastructure and debt management.

“The government has achieved significant success through domestic Sukuk bonds for key road projects,” the president said in the letter. 

“However, there is now a pressing need to access foreign financing to complement local sources and ensure sustainable infrastructure funding.”

He added that the federal government intends to diversify its sources of financing through multiple channels, including Eurobond issuance, loan syndication, bridge financing, and direct borrowing from global financial institutions.

Part of the proposal also seeks approval to issue a stand-alone sovereign Sukuk worth up to $500 million, which may include 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.

According to the president, the credit enhancement, priced at a 3.5 per cent annual policy premium, would allow Nigeria to restructure more expensive debt while using the remaining funds to finance identified infrastructure projects.

In the letter, Tinubu urged lawmakers to pass a resolution authorising the external borrowing plan, noting that the approach would “support the 2025 budget implementation and stabilise Nigeria’s debt portfolio.”

This latest request follows a broader external borrowing framework approved by the Senate earlier in the year. 

That $21.5 billion plan covers 2025–2026 and is designed to plug fiscal shortfalls and finance critical sectors such as infrastructure, agriculture, education, and healthcare.

Analysts say Tinubu’s new borrowing strategy reflects a continued push to balance economic recovery with fiscal sustainability amid rising global lending costs.

A financial policy expert who spoke on a radio show described the move as “a calculated attempt to manage debt pressure while keeping capital projects on track,” adding that the inclusion of Sukuk and Eurobond components “shows the administration’s intent to attract diverse investors and stabilise external inflows.”

If approved, the loan package is expected to provide short-term relief for Nigeria’s fiscal challenges while expanding funding opportunities for critical development projects in 2025.