The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to help finance part of the 2025 budget deficit.
In addition, the green chamber on Wednesday endorsed the President’s proposal to issue a $500 million debut sovereign sukuk in the international capital market (ICM) to support key infrastructure projects and diversify Nigeria’s financing sources.
The approvals followed the consideration and adoption of the report of the House Committee on Aids, Loans, and Debt Management, which reviewed the borrowing plan and recommended its implementation.
According to the report, the new external borrowing of N1,843,669,786,987.16 (equivalent to $1.229 billion) at the budget exchange rate of N1,500 to $1, as provided for in the 2025 Appropriation Act, will be used to part-finance the N9.28 trillion budget deficit.
Earlier this month, Naijaonpoint had reported that Tinubu requested the House of Representatives to approve the Federal Government’s plan to raise $2.3 billion in external capital for the 2025 fiscal year.
In a letter addressed to the House and read on the floor by Speaker Hon. Abbas Tajudeen, President Tinubu explained that the funds would be raised through a combination of instruments, including the issuance of Eurobonds, bridge financing facilities from book runners, loan syndications, and direct borrowing from international financial institutions.
“The Federal Government has recorded considerable success in the issuance of Sukuk in the domestic capital market for the development of critical infrastructural projects across the country,” the president stated.
In July, the Senate approved the 2025-2026 external borrowing plan of $21.5 billion presented by President Tinubu for consideration.
The Senate also approved the issuance of a Federal Government Bond of N757 billion for the payment of accrued rights pension arrears as of December 2023 for the Contributory Pension Scheme (CPS).
Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year increase of N27.72 trillion or 22.8% when compared to the N121.67 trillion recorded in the corresponding period of 2024.
Earlier, Naijaonpoint reported that Nigeria is in discussions with China’s Export-Import Bank for a $2 billion loan to finance a new “super grid” aimed at easing the country’s chronic power shortages and boosting industrial growth.
The Debt Management Office (DMO) successfully raised N1.39 trillion through the issuance of Sukuk bonds in the domestic capital market, which have been channelled toward the construction and rehabilitation of major roads and bridges nationwide.