By Henry Umoru
The Senate has approved President Bola Tinubu’s request to obtain a total of $2.847 billion in fresh foreign financing to support the 2025 budget and refinance Nigeria’s maturing Eurobonds.
The approval yesterday was sequel to the presentation and consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu, APC, Sokoto North, which reviewed the president’s request titled “New External Borrowing and Refinancing.”
The approval yesterday included a $2.347 billion external borrowing from the international capital market to part-finance the 2025 budget deficit and a $500 million debut Sovereign Sukuk to fund key infrastructural projects across the country.
The Senate’s approval came amid renewed debate over Nigeria’s rising debt profile, which stood at over ₦97 trillion as of mid-2025, according to data from the Debt Management Office (DMO), just as people have expressed concerns about the country’s growing debt levels and potential fiscal risks, but government officials maintain that strategic borrowing remains necessary to close infrastructure gaps and sustain economic growth.
Recall that Tinubu’s letter to the Senate was first read on October 8 and sought legislative backing to secure the loans as part of government efforts to sustain key national projects and manage the country’s debt obligations in line with the 2025 fiscal framework.
In his presentation, Senator Wamakko, who noted that the borrowing was vital for Nigeria’s economic stability, project continuity, and the maintenance of the country’s credit reputation in the international financial system, explained that the approval would enable the federal government to meet its 2025 funding needs without disrupting ongoing fiscal commitments.
In his contribution, Chairman, Senate Committee on Finance, Senator Sani Musa, APC, Niger East, who backed the request, noted that it was critical for the effective implementation of the 2025 Appropriation Bill, adding that the borrowing was already embedded in the fiscal projections.
Musa said, “It is very necessary that we give approval to this request so that the 2025 appropriation will be given the necessary funding.
On his part, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, APC, Lagos East who clarified that the new borrowing would not add to Nigeria’s debt burden but was part of already approved budgetary provision, said, “This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing.
“The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing,”
In his contribution, Chairman of the Senate Committee on Interior, Senator Adams Oshiomhole (APC, Edo North), also defended the borrowing plan, arguing that loans, when targeted at productive sectors, could drive economic recovery and generate employment.
He said, “There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay.”
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