The House of Representatives has given the green light to President Bola Tinubu’s request to borrow $2.35 billion to help bridge Nigeria’s 2025 budget deficit. Alongside this, lawmakers also approved the issuance of a $500 million debut sovereign sukuk in the international market — a move designed to finance key infrastructure projects and broaden the nation’s funding sources.
The approval followed a detailed review by the House Committee on Aids, Loans, and Debt Management. According to the committee’s report, the new external borrowing of about ₦1.84 trillion (equivalent to $1.23 billion) will be implemented at an exchange rate of ₦1,500 to $1, as outlined in the 2025 Appropriation Act. This borrowing is expected to finance part of the ₦9.27 trillion budget deficit.
President Tinubu, in his earlier request to the National Assembly, explained that the borrowing was in line with sections 21(1) and 27(1) of the Debt Management Office Act, 2003 — which require legislative approval for new external loans. He noted that the funds would be sourced through various instruments, including eurobonds, syndicated loans, or bridge financing, depending on global market conditions.
On the proposed $500 million sukuk, Tinubu emphasized that the goal was to diversify Nigeria’s investor base and strengthen its sovereign debt instruments. He added that the proceeds would be directed toward vital infrastructure projects across the country — particularly in transport and road development — while about 25% might be used to refinance existing high-cost debts.
Between 2017 and 2025, Nigeria has successfully raised over ₦1.39 trillion through domestic sukuk bonds for major road projects. The new international sukuk, the president noted, will complement those domestic efforts, helping to attract global Islamic investors and boost Nigeria’s credit profile.
By approving the borrowing plan, the House of Representatives has paved the way for the Federal Government to execute the external financing component of the 2025 budget. The move is part of Tinubu’s wider fiscal strategy aimed at stabilizing the naira, improving foreign reserves, and accelerating infrastructure growth — even as the country continues to navigate mounting debt challenges.
