Tinubu Seeks Senate Approval for Fresh N1.15 Trillion Loan, Days After Securing $2.3 Billion External Facility

President Bola Tinubu has asked the Senate to approve a fresh ₦1.15 trillion loan to support the implementation of Nigeria’s 2025 budget, coming just six days after lawmakers cleared his request to secure a $2.3 billion external facility.

The new request was conveyed in a letter presented by Senate President Godswill Akpabio during Tuesday’s plenary. Tinubu explained that the loan would be raised from the domestic debt market, noting that the expanded size of the 2025 budget made additional borrowing necessary. He added that the request aligns with provisions of the Fiscal Responsibility Act.

Akpabio referred the proposal to the Senate Committee on Local and Foreign Debt and directed the committee to provide its report within one week.

This move follows the recent approval of a $2.3 billion external borrowing plan that may be sourced through Eurobonds, syndicated loans, bridge financing arranged by book-runners, or direct facilities from international financial institutions. Earlier in the year, the government also obtained approval for $21.5 million, ¥15 billion, and a €65 million grant under its 2025–2026 external borrowing plan.

Concerns over Nigeria’s debt profile continue to grow. According to the Debt Management Office, total public debt stood at ₦144.7 trillion (around $94.2 billion) as of December 2024, split between ₦74.4 trillion in domestic obligations and ₦70.3 trillion in external liabilities. Rising borrowing has pushed up debt servicing costs sharply. Nigeria spent ₦7.8 trillion on debt servicing in 2023 — more than double the previous year — and that figure rose again to ₦13.12 trillion in 2024.

Despite the pressure this places on public finances, the administration maintains that borrowing is essential for national development, especially amid falling domestic revenue. Tinubu has argued that the funds are needed to address decayed infrastructure and maintain government operations.

The latest loan request also raises questions about which budget it intends to support. Nigeria is simultaneously running the extended 2024 capital budget, now set to end in December 2025, and the newly approved 2025 budget of ₦54.2 trillion. Many ministries and agencies report limited releases, with estimates suggesting that only about 40 percent of the 2024 capital budget has been implemented and work on the 2025 capital component is yet to start. This has led to speculation that the 2025 capital budget may also require an extension into 2026.