By Bukola Kayode
The Senate on Wednesday received a letter seeking its approval to take $2.35 billion in external loans to partly-finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds, as well as issue a $500 million sovereign Sukuk to fund infrastructure projects.
Senate President Akpabio who read the letter at plenary, subsequently referred the President’s request to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North), directing the panel to review the proposal and report back within one week.
In the letter, President Tinubu stated that the funds would be sourced through options in the International Capital Market (ICM), including Eurobonds, syndicated loans, bridge finance facilities, or direct borrowing from international financial institutions.
The President added that the 2025 Appropriation Act provides for ₦9.276 trillion in new borrowings to fund the budget deficit, of which ₦1.843 trillion (about $1.229 billion) is expected to come from external sources.
Tinubu noted that refinancing the maturing Eurobonds was standard practice in global debt markets and necessary to prevent default. “The plan is to refinance the maturing Eurobonds through Eurobond issuance, bridge finance, syndicated loans, or direct borrowing as needed,” he explained.
The President told lawmakers that Nigeria as a regular participant in the ICM, remains well-positioned to raise the proposed amount, subject to market conditions. He stated that the Federal Ministry of Finance and the Debt Management Office (DMO) would work with transaction advisers to secure the most favorable terms
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