THE National Assembly (NASS) has approved President Bola Tinubu’s request to secure a total of $2.35 billion from the international capital market to partly finance Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
In addition to the external borrowing, lawmakers also endorsed the President’s plan to issue a $500 million debut sovereign Sukuk in the international capital market to fund key infrastructure projects and broaden the country’s financing sources.
The approval followed the adoption of reports presented by the Senate and House Committees on Aids, Loans, and Debt Management after reviewing the government’s borrowing plans.
During plenary today, the House of Representatives, led by Speaker Tajudeen Abbas, considered the committee’s report presented by its chairman, Hon. Abubakar Hassan Nalaraba, and subsequently approved the borrowing proposal.
According to the report, the lower chamber authorized the implementation of new external borrowing amounting to ₦1.84 trillion (approximately $1.23 billion) at the budget exchange rate of ₦1,500 per dollar.
The funds will form part of the ₦9.27 trillion deficit outlined in the 2025 Appropriation Act.
President Tinubu had earlier sought parliamentary approval for the loan under Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandates legislative consent for new borrowing and refinancing operations.
He explained that the funds would be raised through a mix of instruments, including Eurobonds, syndicated loans, or bridge financing, depending on prevailing market conditions.
The government said the borrowing plan is aimed at strengthening Nigeria’s fiscal position, enhancing infrastructure investment, and ensuring the timely settlement of existing obligations.