Tinubu in his office.webp
The Digest:

President Bola Tinubu has formally requested the Senate's approval for a new external borrowing plan totaling $2.3 billion. The request aims to fund the 2025 budget and manage existing debt, signaling a continued reliance on foreign borrowing to stabilize the economy.

Key Points:
  • The request was detailed in a letter read by Senate President Godswill Akpabio during plenary.
  • The loan is intended to implement the 2025 budget and refinance a maturing $1.118 billion Eurobond from 2018.
  • It also aims to expand Nigeria's debt instruments to include Islamic finance products.
  • The 2025 fiscal framework already anticipates $1.84 billion in external borrowings.
  • The President stated that refinancing the maturing bond is a "standard practice" for debt sustainability.
  • The funds will be sourced from instruments like Eurobonds, syndicated loans, and multilateral institution loans.
  • Tinubu argued that this move is vital for maintaining Nigeria's fiscal credibility and investor confidence.
This request underscores the government's ongoing challenge of balancing budget deficits with the management of a growing public debt profile.

Sources: Daily Trust