President Tinubu Seeks Senate Approval for $2.3bn Loan to Support Budget

President Bola Ahmed Tinubu has requested Senate approval for a new external borrowing plan totaling $2.3 billion. The loan is intended to support the implementation of the 2025 budget, refinance maturing Eurobonds, and diversify Nigeria's debt portfolio.

The borrowing plan includes a mix of Eurobonds, syndicated loans, bridge financing, and direct credit from multilateral lenders. Tinubu emphasized that the borrowing strategy aims to optimize costs and manage risks effectively.

The refinancing of the $2.3 billion Eurobond issued in 2018 is part of the plan to ensure debt sustainability and attract investors. The move is seen as a standard practice in the debt capital market to enhance Nigeria's financial position.