The House of Representatives on Wednesday approved President Bola Tinubu’s request to borrow $2.85 billion from international debt markets.
The borrowing will include the country’s first-ever issuance of a sovereign Sukuk valued at $500 million.
President Tinubu asked parliament earlier this month to approve new international borrowing and authorise the issuance of a $500 million debut sovereign Sukuk
The new funds would be used to part-finance the budget deficit and refinance maturing Eurobonds due in November. The maturing bond valued at $1.12 billion (7.625 per cent) will reduce pressure and stabilise Nigeria’s external debt position.
President Tinubu said that the borrowing could be done via the Eurobond market, loan syndication, bridge financing from bookrunners, or directly from international banks.
The approval followed the consideration and adoption of the report presented by the House Committee on Aids, Loans, ans Debt Management, chaired by Mr Abubakar Hassan Nalaraba.
The loan will partly finance the N9.27 trillion budget deficit contained in the country’s N54 trillion fiscal plan.