The House of Representatives has given the green light to President Bola Ahmed Tinubu’s request to borrow $2.35 billion to support the financing of the 2025 budget deficit. Lawmakers also approved the issuance of a $500 million debut sovereign sukuk in the international capital market to boost infrastructure funding and widen Nigeria’s financing portfolio.
The approval followed the adoption of the report by the House Committee on Aids, Loans, and Debt Management, which endorsed the President’s external borrowing plan after due consideration.
Under the new resolution, the House authorised the implementation of an external borrowing totalling ₦1.84 trillion (approximately $1.23 billion) at the budget exchange rate of ₦1,500 per dollar. The facility is part of efforts to cover the projected ₦9.27 trillion federal budget deficit for the 2025 fiscal year.
President Tinubu, in his letter to the National Assembly earlier this month, cited Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative consent for any new borrowing or refinancing initiative.
Explaining the rationale behind the move, Tinubu stated that the funds would be mobilised through Eurobonds, syndicated loans, or bridge financing options, depending on prevailing global market conditions.
He said: “The federal government expects the pricing of the new Eurobonds to align with current yields on Nigeria’s existing international market bonds, ranging between 6.8 per cent and 9.3 per cent, depending on maturity.”
The President further disclosed that the proposed $500 million sovereign sukuk would “diversify Nigeria’s investor base and deepen participation in the government securities market.”
According to Tinubu, the proceeds from the sukuk issuance will be directed towards financing key infrastructure projects across the country. He noted that Nigeria had previously raised over ₦1.39 trillion through domestic sukuk issuances between 2017 and 2025 to support major road and development projects.
“It is imperative to open new sources of funding for the federal government and to deepen the FGN securities market,” the President added.
He also explained that up to 25 per cent of the sukuk proceeds might be used to refinance existing high-cost debt, while the remainder would be deployed for infrastructure development.
The Presidency described the borrowing plan as part of the administration’s broader fiscal strategy aimed at stabilising the naira, strengthening foreign reserves, and accelerating capital project execution amid mounting debt obligations.
