The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit.
The Green Chamber also granted approval for the President to issue a $500 million debut sovereign Sukuk in the international capital market to fund key infrastructure projects and diversify the nation’s financing sources.
The approvals followed the consideration of a report by the House Committee on Aids, Loans, and Debt Management during plenary on Thursday.
Under the resolution, the House endorsed the implementation of a new external borrowing of ₦1.84 trillion (equivalent to $1.23 billion) at the 2025 budget exchange rate of ₦1,500 to $1, as provided in the Appropriation Act, to partially fund the ₦9.27 trillion budget deficit.
Earlier this month, President Tinubu had written to the National Assembly seeking approval for the borrowing plan in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandates legislative approval for all new loans and refinancing arrangements.
According to the President, the loans will be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
He added that the pricing of the new Eurobonds would align with current yields on Nigeria’s existing international bonds, ranging between 6.8% and 9.3%, depending on maturity.
On the proposed $500 million Sovereign Sukuk, Tinubu said the initiative aims to diversify Nigeria’s investor base and deepen the government securities market, with proceeds channeled toward critical infrastructure development nationwide.
The President noted that between 2017 and 2025, the Federal Government successfully raised over ₦1.39 trillion through domestic Sukuk issuances for major road and infrastructure projects, adding that the new external Sukuk would complement those efforts.
“It is imperative to open new sources of funding for the Federal Government and deepen the FGN securities market,” Tinubu stated in his letter to the National Assembly.
He further explained that 25 percent of the Sukuk proceeds may be used to repay high-cost existing debts, while the remainder will support infrastructure financing.
The borrowing plan, according to the Presidency, forms part of Tinubu’s broader fiscal strategy to boost foreign reserves, stabilize the naira, and fund essential infrastructure projects amid mounting debt obligations.
The House approval marks a major step toward implementing the external financing component of the 2025 Appropriation Act.
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