By Editor
The Nigerian Senate has approved President Bola Tinubu’s request to secure2.847 billion in new foreign loans to help fund the 2025 budget deficit and refinance the country’s maturing Eurobonds.
The loan package includes 2.347 billion to be sourced from the international capital market and an additional500 million through a debut Sovereign Sukuk, aimed at financing critical infrastructure projects nationwide.
The approval came after the Senate reviewed a report presented by the Committee on Local and Foreign Debts, led by Senator Aliyu Magatakarda Wamakko.
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.