The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to help finance part of Nigeria’s 2025 budget deficit.
Lawmakers also endorsed the president’s proposal to issue a $500 million debut sovereign sukuk in the international capital market to fund key infrastructure projects and diversify the nation’s sources of financing.
The approval followed the House’s consideration of a report by the Committee on Aids, Loans and Debt Management.
In addition, the chamber authorised the implementation of a new external borrowing of ₦1.84 trillion (approximately $1.23 billion) at the 2025 budget exchange rate of $1 = ₦1,500, to partly finance the ₦9.27 trillion budget deficit.
Earlier this month, President Tinubu had written to the National Assembly seeking approval for the loans in line with the Debt Management Office (Establishment) Act, 2003, which mandates legislative consent for all new external borrowings.
In his request, Tinubu explained that the funds would be raised through Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
He further noted that new Eurobond pricing would align with Nigeria’s existing international bonds, which currently yield between 6.8% and 9.3%, depending on maturity.
On the proposed $500 million sovereign sukuk, the president said the initiative aims to attract a broader pool of investors while deepening Nigeria’s government securities market.
He added that the proceeds would finance critical infrastructure projects nationwide, complementing domestic sukuk issuances that have so far raised over ₦1.39 trillion between 2017 and 2025 for major road and infrastructure works.
Tinubu also emphasised the need to expand Nigeria’s funding options, proposing that the sukuk may be issued with or without credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) — a member of the Islamic Development Bank Group.
According to him, 25% of the sukuk proceeds would go toward repaying high-cost debts, while the remaining funds would be dedicated to infrastructure development across the country.
