The House of Representatives has approved President Bola Ahmed Tinubu’s request to obtain $2.34 billion from the international capital market to help finance Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The approval followed the consideration of a report presented by the House Committee on Aids, Loans and Debt Management during plenary on Wednesday. Lawmakers said the move was essential to support the implementation of the 2025 Appropriation Act and ensure fiscal stability amid rising debt obligations and limited domestic revenue.
According to the committee’s report, the proposed borrowing will be sourced from multiple international financing instruments, including commercial loans and bond issuances, with terms expected to be negotiated at competitive interest rates.
In addition to the $2.34 billion approval, the House also endorsed plans by the Federal Government to issue Nigeria’s first-ever $500 million Sovereign Sukuk in the global market. The Islamic bond, which aligns with non-interest financial principles, is expected to attract new categories of investors while broadening the country’s external funding options.
Committee chairperson Hon. Ahmed Dayyabu Safana explained that the borrowing plan aligns with the government’s medium-term debt management strategy, which seeks to reduce debt-servicing costs and diversify Nigeria’s sources of external financing.
He added that proceeds from the loan would be used to fund priority capital projects in infrastructure, power, transport, and other critical sectors of the economy.
The lawmakers, however, urged the executive arm to ensure transparency and accountability in the utilization of the borrowed funds and to avoid excessive reliance on external borrowing.
The approval is part of the Federal Government’s broader financing framework for the 2025 fiscal year, aimed at narrowing the budget deficit and stimulating economic growth through strategic investments.
