The Senate has approved President Bola Tinubu’s request to secure $2.7 billion in external loans to support the implementation of the 2025 national budget and stabilize Nigeria’s financial obligations in the international market.
The approval followed the adoption of a report presented by the Senate Committee on Local and Foreign Debt, which recommended that the Federal Government explore multiple international financing windows including Eurobond issuance, loan syndications, bridge financing, and credit facilities from multilateral financial institutions.
The committee said the borrowing plan is crucial to “bridge the financing gap in the 2025 budget, prevent Eurobond default, preserve Nigeria’s credibility in global markets, diversify funding sources through ethical finance instruments, and support critical infrastructure projects that drive inclusive economic growth.”
The Senate also approved the issuance of a $500 million sovereign Sukuk in the international capital market, with the option of applying credit enhancement measures if needed.
Senate President Godswill Akpabio, after the resolutions were adopted, said the National Assembly expects to see visible progress in budget implementation as a result of the approved borrowing.
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The committee further stressed the need for strict monitoring to ensure adherence to debt sustainability ratios and approved borrowing limits.
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