Tinubu Seeks $2.847 Billion Loan to Bridge Nigeria’s 2025 Budget Gap

In a bold move to address Nigeria’s fiscal challenges, President Bola Tinubu has submitted a request to the National Assembly for approval of a $2.847 billion external borrowing plan. The proposal, detailed in a letter to lawmakers, includes $2.347 billion in external loans and a $500 million sovereign Sukuk to finance the 2025 budget deficit and refinance a maturing Eurobond. This development, announced on October 8, 2025, underscores the administration’s ongoing economic reforms amid rising inflation and public discontent.

The loan request aligns with Tinubu’s macroeconomic adjustments, including the unification of the naira exchange rate and the removal of fuel subsidies, which the World Bank has praised for boosting Nigeria’s competitiveness. However, critics argue these policies have deepened poverty, with inflation soaring and living costs straining millions of households. The proposed funds aim to stabilize the economy, support infrastructure, and meet debt obligations, but they’ve sparked debate over Nigeria’s growing debt profile.

On platforms like X, reactions are mixed. Supporters of the administration view the loan as a necessary step to sustain reforms, while detractors, including opposition figures, warn of over-reliance on borrowing without tangible relief for citizens. As the National Assembly deliberates, all eyes are on whether this financial strategy will deliver stability or fuel further economic strain.

Written by Gold Oyeniran