LunagisthubNigeria Seeks $2.3 Billion External Loan to Address Budget Deficit
President Bola Ahmed Tinubu has requested approval from the House of Representatives to secure approximately $2.3 billion in external borrowing. The loan will be used to address Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
Purpose of the Loan
The borrowing request includes
$1.2 billion in new external loans: To finance the 2025 Appropriation Act and support the government’s budget.
$1.1 billion to refinance Eurobond maturities: To manage the country’s debt obligations and prevent default.
According to President Tinubu, the loan is necessary to .
Nigeria’s infrastructure deficit is estimated to be around $878 billion, and the government plans to deploy $35 billion annually to close this gap.
The government aims to open new sources of funding and deepen the federal government security markets.
Proposed Funding Sources
The loan will be sourced through:
Issuance of Eurobonds. Bridge finance from bookrunners
Loan syndication
Direct borrowing from international financial institutions
The success of this loan request will depend on the government’s ability to negotiate favorable terms and implement effective economic reforms.
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