The Senate and the House of Representatives have approved a fresh external loan of $2.347 billion for President Bola Tinubu, intended to finance the 2025 budget deficit and service maturing Eurobonds.

The approval came during separate sessions on Wednesday, following committee reports that emphasised the necessity of the borrowing for economic stability and fiscal continuity.

In the House of Representatives, the decision followed the adoption of a report by the Committee on Aids, Loans, and Debt Management, presented by Chairman Rep. Abubakar Nalaraba at a plenary presided over by Speaker Tajudeen Abbas. The lawmakers also approved an additional $500 million Sukuk to support infrastructure development.

Senator Aliyu Wamakko, who presented the Senate committee report, said the loan would help Nigeria maintain its creditworthiness in the international financial system and ensure the government meets its 2025 funding obligations without disrupting other fiscal commitments.

Senate Committee on Finance Chairman, Sani Musa, described the borrowing as critical to the effective implementation of the 2025 Appropriation Bill, noting that it was already reflected in the year’s fiscal projections.

Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, added that the loan would not exacerbate Nigeria’s debt profile. He explained, “This is more of a compliance measure. The 2025 Appropriation Act has already captured it as part of the deficit financing. The second request is a refinancing arrangement to ensure the country does not default on Eurobond servicing.”

Similarly, Senator Adams Oshiomhole (Edo North) defended the borrowing, arguing that well-targeted loans could drive economic recovery, create jobs, and address critical infrastructural gaps. “There is nothing wrong with borrowing if it is properly structured and used for productive sectors,” he said.

The approval comes amid growing public debate over Nigeria’s rising debt, which, according to the Debt Management Office (DMO), currently exceeds N97 trillion.