By Nathaniel Zaccheaus, Abuja
The Senate on Wednesday 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 includes 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 decision followed the adoption of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu, which reviewed the President’s request titled “New External Borrowing and Refinancing.”
Tinubu’s request, transmitted to the National Assembly and first read on October 8, 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.
Presenting his report, Senator Wamakko said the borrowing was vital to Nigeria’s economic stability, project continuity, and the maintenance of the country’s creditworthiness in the international financial system.
He explained that the approval would enable the federal government to meet its 2025 funding needs without disrupting ongoing fiscal commitments.
In his contribution, Senator Sani Musa, Chairman of the Senate Committee on Finance, backed the request, noting that it was critical for the effective implementation of the 2025 Appropriation Bill.
Musa said, “We must approve this request so that the 2025 appropriation will be given the necessary funding.
Musa added that the borrowing was already embedded in the fiscal projections.
Also lending his voice, Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, clarified that the new borrowing would not add to Nigeria’s debt burden but was part of already approved budgetary provisions.
“This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing,” Abiru said.
“The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing,” he added.
Senator Adams Oshiomhole (Edo North) also defended the borrowing plan, arguing that targeted loans could drive economic recovery and generate employment.
“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay,” Oshiomhole said.
The Senate’s approval comes 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).
Critics have repeatedly 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.
With Wednesday’s endorsement, the federal government is expected to move ahead with arrangements for both the Eurobond issuance and the $500 million Sukuk offering in the international capital market.
Experts say the move will not only support the 2025 fiscal plan but also strengthen investor confidence and enhance Nigeria’s global credit standing.
