LunagisthubNigeria Seeks $2.3 Billion External Loan to Boost Economy
President Bola Tinubu has requested the National Assembly’s approval for a fresh external borrowing of $2.3 billion to support the country’s economic growth. The loan will be used to
$1.23 billion will be used to part-finance the 2025 budget deficit.
-$1.12 billion will be used to refinance Nigeria’s maturing Eurobonds due in November 2025.
The government plans to issue a $500 million sovereign Sukuk in the international Islamic finance market to attract investors and deepen Nigeria’s debt market. The government aims to narrow the infrastructure funding gap and diversify its investor Refinancing maturing obligations is part of routine debt management and vital for maintaining Nigeria’s fiscal credibility.
The proposed transactions will reinforce investor trust and ensure prudent fiscal management.
The sovereign Sukuk will attract Islamic investors and deepen Nigeria’s presence in the Islamic finance market.
The international Sukuk will help diversify Nigeria’s funding sources and complement local borrowing for infrastructure development.
Nigeria’s public debt has been rising, with a current debt stock of ₦144.67 trillion as of December 2024, representing a 48.58% increase from ₦87.379 trillion in June 2023 ³. The government’s growing reliance on a mix of domestic and foreign funding reflects a pragmatic response to rising inflation, currency volatility, and high global interest rates.
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