Abuja — The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to help fund part of Nigeria’s 2025 budget deficit.
The lawmakers also endorsed the President’s plan to issue a $500 million debut sovereign sukuk in the international capital market. The sukuk, a Sharia-compliant bond, is aimed at financing key infrastructure projects and broadening Nigeria’s funding sources.
The approval followed the consideration of a report by the House Committee on Aids, Loans, and Debt Management.
According to the report, the House approved the implementation of new external borrowing amounting to ₦1.84 trillion (equivalent to $1.23 billion) at the official exchange rate of ₦1,500 per dollar, as captured in the 2025 Appropriation Act. The loan will help finance part of the ₦9.28 trillion budget deficit.
Earlier this month, President Tinubu had written to the National Assembly seeking approval for the borrowing plan, citing sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandate legislative approval for new loans and refinancing arrangements.
He explained that the funds would be raised through a mix of Eurobonds, syndicated loans, or bridge financing, depending on market conditions. Tinubu also noted that the pricing of the proposed Eurobonds would align with Nigeria’s current bond yields, which range between 6.8% and 9.3%, depending on maturity.
On the $500 million sovereign sukuk, the President said the initiative would attract more diverse investors and deepen the government’s securities market. He added that proceeds from the issuance would be channelled toward critical infrastructure development across the country.
Tinubu highlighted that between 2017 and 2025, the federal government had raised over ₦1.39 trillion through domestic sukuk issuances for key road and infrastructure projects. The planned external sukuk, he said, would complement these domestic efforts.
In his letter, the President noted that up to 25% of the sukuk proceeds might be used to refinance high-cost debts, while the remaining funds would go into infrastructure financing.
Read Also;
Senate hails Tinubu over Nigeria’s exit from FATF grey list
He emphasized the need to “open new funding sources for the federal government and deepen the FGN securities market,” adding that the issuance could include credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group.
The move is part of Tinubu’s broader fiscal strategy to boost foreign reserves, stabilize the naira, and fund major infrastructure projects amid growing debt service obligations.
The House’s approval represents a key milestone in implementing the external financing component of the 2025 Appropriation Act.
