The National Assembly has approved President Bola Tinubu’s request to raise a total of $2.347 billion from the international capital market to support the funding of the 2025 budget deficit and refinance maturing Eurobonds. Lawmakers also granted approval for the issuance of a $500 million debut sovereign Sukuk in the international market to finance key infrastructure projects and diversify Nigeria’s funding sources.
The approvals followed the adoption of reports presented by the Senate and House Committees on Aids, Loans, and Debt Management on Wednesday.
During plenary presided over by Speaker Tajudeen Abbas, the House of Representatives endorsed the President’s borrowing plan, including the implementation of a new external borrowing of N1.84 trillion (equivalent to $1.229 billion at the budget exchange rate of $1/N1,500) as provided in the 2025 Appropriation Act. The loan is intended to partly fund the N9.27 trillion budget deficit.
President Tinubu had earlier requested legislative approval, citing Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require National Assembly consent for external borrowing and refinancing arrangements.
According to the President’s communication to lawmakers, the funds will be raised through one or a mix of Eurobonds, syndicated loans, or bridge financing, depending on market conditions at the time of issuance.
The $500 million international Sukuk is expected to broaden Nigeria’s investor base and support infrastructure financing in line with global trends in Islamic finance instruments.
The National Assembly’s approval signals a continued reliance on external borrowing to support fiscal stability amid revenue pressures and rising debt obligations.
