President tinubu requests senate approval for new ₦1.15trn domestic loan to bridge 2025 budget gap.

President Bola Tinubu has requested the National Assembly’s approval for a fresh ₦1.15 trillion domestic loan to bridge the deficit in the 2025 national budget. The request, contained in a letter read by Senate President Godswill Akpabio during Tuesday’s plenary, is part of measures to sustain key government programmes and projects.

Tinubu explained that the loan would ensure smooth implementation of the 2025 budget and compliance with the Fiscal Responsibility Act 2007 and relevant executive orders requiring legislative approval for new borrowings. The Senate referred the proposal to the Committee on Local and Foreign Debt, which has one week to submit its report.

The latest borrowing plan comes just days after the Senate approved Tinubu’s request for a $2.847 billion external loan, including a $500 million debut Sovereign Sukuk, aimed at funding the budget deficit and refinancing maturing Eurobonds.

Earlier in May, Tinubu sought approval for a $21.5 billion external loan for infrastructure, health, education, and water projects, as well as a ₦758 billion domestic bond to clear outstanding pension arrears under the Contributory Pension Scheme.

According to the Debt Management Office, Nigeria’s total public debt rose to ₦152.40 trillion as of June 2025, up from ₦149.39 trillion in March — an increase of ₦3.01 trillion within three months. In dollar terms, the debt stands at $99.66 billion, underscoring the country’s growing reliance on borrowing to fund fiscal shortfalls amid ongoing revenue reforms and foreign exchange liberalization.

The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit. It also granted the President’s request to issue a $500 million debut sovereign sukuk in the international capital market to fund infrastructure projects and diversify Nigeria’s financing sources.

Reps approve Tinubu’s request to borrow $2.35bn, issue $500m sovereign sukuk.

Reps Approve Pres. Tinubu’s $2.35bn Loan Request, $500m International Sukuk for 2025 Budget

The House of Representatives has approved President Bola Tinubu’s request to secure $2.35 billion in external loans to help finance part of Nigeria’s 2025 budget deficit. 

The House also approved the issuance of a $500 million sovereign sukuk in the international market to support infrastructure development & diversify government funding sources.

The approvals followed the adoption of a report by the House Committee on Aids, Loans & Debt Management during plenary on Wednesday.

In line with the 2025 Appropriation Act, the House endorsed the implementation of N1.84 trillion in new external borrowing at a budget exchange rate of N1,500/$1, to partly fund the projected N9.28 trillion federal deficit.

President Tinubu had earlier written to the National Assembly requesting approval, citing Sections 21(1) & 27(1) of the Debt Management Office Act, which require legislative consent for external borrowing.

The President stated that the loans may be raised through Eurobonds, syndicated loans, or bridge financing, depending on market conditions. He noted that interest rates would likely align with current yields on Nigeria’s existing international bonds, which range from 6.8% to 9.3%.

On the $500 million international sukuk, Tinubu explained that it would attract new investor groups, deepen Nigeria’s securities market, and fund critical infrastructure. 

He added that Nigeria has already raised over N1.39 trillion through domestic sukuk issuances since 2017 for major road and capital projects, and the international sukuk would complement these efforts. Up to 25% of the funds may be used to refinance existing high-cost debt.

The approvals clear the way for the Federal Government to proceed with the financing plans.

Pres. Tinubu Seeks Lawmakers’ Approval to Raise $2.8bn for Budget and Infrastructure.

President Bola Ahmed Tinubu has written to the House of Representatives seeking approval to raise $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.

 He also requested authorization to issue a $500 million debut sovereign Sukuk to fund critical infrastructure.

The letter, read by Speaker Abbas Tajudeen during Tuesday’s plenary, stated that the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.

Tinubu explained that the borrowing would fund provisions in the 2025 Appropriation Act, refinance the $1.118 billion Eurobond due in November 2025, and expand access to diversified external financing. The 2025 budget includes N9.28 trillion in new borrowings to cover the fiscal deficit, with N1.84 trillion ($1.229 billion) set aside for external loans.

The President asked the House to approve raising the funds through options such as Eurobond issuance, bridge financing, loan syndication, or borrowing from international financial institutions. He said the plan would help “avoid default” and align with global best practices.

Tinubu noted that the external capital to be raised—$1.229 billion for new borrowing and $1.118 billion for refinancing—totals $2.347 billion. He added that the government’s primary strategy is to issue Eurobonds, with terms determined by prevailing market conditions.

The Finance Ministry and Debt Management Office would work with transaction advisers to secure favorable terms.
In a separate request, Tinubu sought approval to issue a $500 million international Sukuk, modeled after Nigeria’s domestic Sukuk programme that has raised over N1.39 trillion since 2017 for infrastructure. He said the debut Sukuk would attract new investors, diversify funding sources, and deepen Nigeria’s sovereign securities market.