The Federal Government has explained that its proposed $2.35 billion external borrowing plan is a strategic combination of new financing for the 2025 budget and refinancing of maturing Eurobonds, aimed at stabilising Nigeria’s debt profile and supporting economic recovery.
Director-General of the Debt Management Office (DMO), Patience Oniha, said the borrowing plan includes $1.229 billion to fund part of the 2025 Appropriation Act and $1.118 billion to redeem Eurobonds maturing in November 2025. She noted that refinancing matured debts with new Eurobond issues is a common international practice that allows countries to manage obligations efficiently while maintaining investor confidence.
The News Chronicle gathered that President Bola Tinubu’s administration intends to raise the funds through instruments such as Eurobonds, syndicated loans, and concessional borrowing from international lenders. Oniha emphasised that similar refinancing actions have been taken by countries such as Kenya, Cameroon, Gabon, and Angola within the past year.
Oniha added that although Nigeria previously maintained a 50-50 balance between domestic and external borrowing, global financial constraints following the COVID-19 pandemic forced the government to rely more heavily on the local market. She, however, clarified that concessional funding from institutions like the World Bank and IMF still represents more than 40 percent of Nigeria’s external debt.
Analysts believe the move could strengthen the naira and improve the nation’s external reserves. As of mid-October 2025, the naira had appreciated by 4.5 percent to N1,475.35 per dollar, while reserves rose to $42.68 billion — a $1.8 billion increase since the start of the year, according to Central Bank data.
Experts such as Ayokunle Olubunmi of Agusto & Co. and Adebowale Funmi of Parthian Securities observed that the planned Eurobond issuance will provide short-term liquidity support, ease debt repayment pressure, and stabilise the foreign exchange market. However, they warned that it could also increase Nigeria’s external debt burden and exposure to currency risks if fiscal reforms and revenue mobilisation are not strengthened.
