Nigeria seeks $2.2B foreign debt to fund 2025 budget

Nigeria is planning to raise $2.2 billion from international debt markets to finance ongoing economic reforms, Finance Minister Wale Edun announced on Thursday.

The country aims to secure $1.7 billion in Eurobonds and an additional $500 million through Sukuk, subject to parliamentary approval.

The funds will be utilized to support President Bola Tinubu’s ambitious reform agenda, which includes the removal of fuel subsidies and liberalization of the foreign exchange market.

These measures, while aimed at boosting economic growth, have contributed to rising inflation.

Nigeria’s 2025 budget, as outlined by Budget Minister Atiku Bagudu, projects a total expenditure of 47 trillion naira ($28.2 billion).

To bridge a significant fiscal gap of 13.8 trillion naira, the government plans to rely on additional borrowing.

The budget forecasts an exchange rate of 1,400 naira to the US dollar for 2025, a more optimistic projection compared to the current official rate of 1,655 naira.

Despite the challenges, the government remains optimistic about its fiscal performance, with key non-oil revenue streams exceeding expectations.

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