Senate approves Tinubu’s $2.8bn loan, $500m Sukuk for infrastructure

The Nigerian Senate has approved President Bola Tinubu’s request to obtain $2.847 billion in fresh foreign loans, including a $500 million debut Sovereign Sukuk, to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.

The approval followed the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), which reviewed the president’s request titled “New External Borrowing and Refinancing.”

According to the breakdown, $2.347 billion will be raised from the international capital market to part-finance the 2025 budget deficit, while $500 million will be sourced through the Sukuk bond to fund key infrastructural projects across the country.

The endorsement by the upper legislative chamber comes amid mounting public concern over Nigeria’s rising debt stock, which has climbed to over ₦97 trillion as of mid-2025, according to figures from the Debt Management Office.

While critics warn of potential fiscal strain, government officials insist that strategic borrowing remains crucial to sustaining economic growth, bridging infrastructure gaps, and maintaining investor confidence.

Recall that President Tinubu had, in a letter read on the floor of the Senate on October 8, 2025, sought legislative approval to secure the loans as part of the government’s plan to finance critical national projects and manage the country’s debt obligations under the 2025 fiscal framework.

Presenting the committee’s report, Senator Wamakko said the borrowing plan was essential for Nigeria’s economic stability, project continuity, and the maintenance of its international credit reputation.

He explained that the move would enable the federal government to meet its 2025 funding needs without derailing ongoing fiscal commitments.

Supporting the motion, Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), said the borrowing request was critical for the smooth implementation of the 2025 Appropriation Bill.

Musa said, “We must give approval to this request so that the 2025 appropriation will be given the necessary funding.”

Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions (APC, Lagos East), clarified that the new borrowing would not add to Nigeria’s debt burden.

He described it as a compliance measure consistent with the already approved budgetary provisions.

“This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing. The second request is a refinancing arrangement to ensure that the country does not default in Eurobond servicing,” Abiru explained.

Also speaking, Senator Adams Oshiomhole, Chairman of the Senate Committee on Interior (APC, Edo North), defended the borrowing plan, arguing that loans, when properly structured and channeled toward productive sectors, could stimulate economic growth and create jobs.

“There’s nothing wrong with borrowing if it is properly structured and used to address critical issues like unemployment and infrastructural decay,” Oshiomhole stated.

The Senate’s decision marks another major step in President Tinubu’s efforts to strengthen Nigeria’s fiscal position ahead of the 2025 financial year, even as the administration continues to grapple with dwindling revenues and high debt-servicing obligations.