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.

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.

Tinubu’s govt mortgaging our children’s future with reckless borrowing – Peter Obi. Peter Obi, former Anambra governor and 2023 presidential candidate of the Labour Party (LP), has raised alarm over Nigeria’s growing debt profile, warning that the government is mortgaging the future of unborn generations through unsustainable and unaccountable borrowing. In a statement issued on Monday, Obi described as worrisome the Senate’s recent approval of additional external loans totalling $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal period. He noted that the upper legislative chamber also approved a ₦750.98 billion domestic bond issuance and a €65 million grant. Obi said that as of the first quarter of 2025, Nigeria’s total public debt stood at ₦149.39 trillion, and with the new approvals amounting to about ₦37.2 trillion, the debt burden has risen to around ₦187 trillion. He warned that Nigeria’s total debt may exceed ₦200 trillion by the end of 2025. His words: “As our GDP before rebasing was about ₦269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of our previous GDP. “Even after the rebasing, which pushed our GDP to about ₦372.8 trillion (about $243.7 billion), the government would have borrowed about 50.16% of the new GDP — the highest debt-to-GDP ratio in our history as a nation.” The LP chieftain said the country is accumulating debt at an exponential rate “with little or nothing to show for it” in key sectors like education, healthcare, electricity, and security. Providers are furious: Internet access without a subscription! Techno Mag by TaboolaSponsored Links He stated: “We still rank low in all major human development indicators. While education is underfunded and standard in continuous decline, healthcare remains inaccessible to millions of Nigerians, particularly the poor.

Senate Approves Tinubu’s $21bn External Loan Request. The Nigerian Senate has approved President Bola Tinubu’s foreign loan request totaling over $21 billion for the 2025–2026 fiscal period. This approval clears the path for the full implementation of the 2025 Appropriation Act. The approved borrowing plan includes $21.19 billion in external loans, €4 billion, ¥15 billion, and a $65 million grant. It also allows for domestic borrowing through government bonds amounting to about ₦757 billion. Additionally, there is a provision to raise up to $2 billion through foreign-currency-denominated instruments within the domestic market. The Senate gave the nod after considering a report by the Chairman of the Committee on Local and Foreign Debt, Senator Aliyu Wamako. He noted that the proposal was initially submitted on May 27 but faced delays due to the National Assembly’s recess and documentation issues from the Debt Management Office. Senator Olamilekan Adeola, Chairman of the Appropriations Committee, explained that most of the borrowing plan was already incorporated into the Medium-Term Expenditure Framework and the 2025 budget. He added that the approval now ensures all projected revenue sources, including loans, are secured to fully fund the national budget.

President Tinubu’s Borrowing Summary (As of May 2025) External Borrowing 1. New Loan Request (May 2025) President Tinubu requested approval for: • $21.5 billion, • €2.2 billion, • ¥15 billion for the 2025–2026 borrowing plan. Estimated Naira value using approximate exchange rates: • $1 ≈ ₦1,600 • €1 ≈ ₦1,800 • ¥1 ≈ ₦11 Converted values: • $21.5 billion × ₦1,600 = ₦34.4 trillion • €2.2 billion × ₦1,800 = ₦3.96 trillion • ¥15 billion × ₦11 = ₦0.165 trillion Total (proposed): ≈ ₦38.525 trillion 🔹 Note: This is a loan request. Approval and disbursement are pending as of May 2025. ⸻ 2. $800 Million World Bank Loan (Approved July 2023) • Purpose: To cushion fuel subsidy removal. • ₦1.28 trillion (at ₦1,600/$) 3. $3 Billion AFREXIM Loan (August 2023) • Secured by NNPC against future oil revenues. • ₦4.8 trillion 4. $7.8 Billion Loan Request (November 2023) • For infrastructure, health, education, and security under the 2022–2024 plan. • ₦12.48 trillion 5. $6.45 Billion World Bank Loans (Reported April 2025) • Possibly overlapping with the $800M and $7.8B above. • Estimated value: ₦10.32 trillion 🔹 To avoid double-counting, this amount is considered part of the previously listed loans unless new information shows otherwise. ⸻ Domestic Borrowing 1. ₦20.1 Trillion in Bonds (June 2023–May 2024) • Raised from domestic investors within the first year. • 117% increase over the previous year. 2. ₦758 Billion Pension Bond Request (May 2025) • To clear pension liabilities under the Contributory Pension Scheme. 3. $2 Billion FX-Denominated Domestic Bond (Requested May 2025) • For issuance in the local market. • ₦3.2 trillion ⸻ Ways and Means (CBN Loans) 1. ₦7.3 Trillion Securitized Loan (December 2023) • Added to the ₦22.7 trillion inherited from the Buhari administration. • Tinubu’s share: ₦7.3 trillion ⸻ Total Estimated Borrowing (Confirmed and Non-Overlapping) Category Amount (₦ Trillion) External Loans ₦18.56 trillion Domestic Loans ₦24.06 trillion Ways & Means ₦7.3 trillion Total ₦49.92 trillion 🔹 Excludes the new ₦38.53 trillion loan request to avoid double-counting. ⸻ If New ₦38.53 Trillion Loan is Approved If the May 2025 request is added: • ₦49.92 trillion + ₦38.53 trillion = ₦88.45 trillion ⸻ Potential Borrowing with Additional ₦45 Trillion (Hypothetical) If an additional ₦45 trillion is requested/approved in the future: • ₦49.92 trillion + ₦45 trillion = ₦94.92 trillion 🧮 President Tinubu could borrow up to ₦94.9 trillion within his first two years in office, depending on approvals and disbursements.#Tinubu #president