The House of Representatives has approved President Bola Tinubu’s request to obtain $2.347 billion from the international capital market to partly finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The approval came after the adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during Wednesday’s plenary presided over by Speaker Tajudeen Abbas.
Since taking office in May 2023, the Tinubu administration has relied on a mix of foreign loans to support fiscal operations and key government programmes.
Between May 2023 and May 2025, Nigeria secured about $7.2 billion in World Bank financing targeted at economic reforms and developmental projects, in addition to a $1 billion facility from the African Development Bank, expected to be disbursed between 2024 and 2025.
In October 2025, the House had also approved a new borrowing plan, including $1.23 billion to fund the 2025 budget and $500 million for Nigeria’s debut Sovereign Sukuk in the international market.
According to the committee’s report, “The new borrowing plan comprises $1.23bn to fund the 2025 budget deficit and $1.12bn to refinance Nigeria’s Eurobond maturing in November 2025.”
Presiding over the Committee on Supply, Deputy Speaker Benjamin Kalu presented the request for consideration, asking members, “The Committee on Supply considered the request of Mr President and made these recommendations. Do we accept these recommendations?” Members responded in the affirmative.
Following their approval, the House authorised the Federal Government to “Implement the external borrowing component of the 2025 Appropriation Act amounting to ₦1.84tn (approximately $1.23bn) at the budget exchange rate of ₦1,500 to $1.”
Lawmakers further approved that the loans may be raised through Eurobond issuance, loan syndication, bridge financing facilities, or direct borrowing from international financial institutions.
The House also endorsed President Tinubu’s proposal for Nigeria’s first-ever Sovereign Sukuk bond of up to $500 million, to be issued in the international capital market, either with or without a credit guarantee.
Recall that President Tinubu had earlier written to the National Assembly, stating that the borrowing plan was necessary to close the gap between projected revenue and expenditure in the 2025 fiscal year, and to enable the government to meet its debt obligations as they mature.
Advertisement
