The Nigerian Senate has approved President Bola Ahmed Tinubu’s request to secure $2.847 billion in new foreign loans, including a $500 million debut Sovereign Sukuk, aimed at funding critical infrastructure projects and closing part of the 2025 budget deficit.
The approval, granted during Wednesday’s plenary session, also covers the refinancing of Nigeria’s maturing Eurobonds, a move expected to ease pressure on the nation’s external reserves and strengthen debt sustainability.
According to the Senate Committee on Local and Foreign Debts, the loan request forms part of the federal government’s 2025 borrowing plan to drive key capital projects, particularly in transportation, power, and housing sectors.
The $500 million Sovereign Sukuk marks Nigeria’s entry into the international Islamic finance market, offering an alternative debt instrument aligned with non-interest financing principles.
Senate leaders assured that the borrowing plan will be implemented with strict transparency and accountability measures to ensure the funds are channelled into projects that stimulate economic growth and job creation.
