The House has approved President Tinubu’s request for $2.35 billion in external loans.
Lawmakers also backed a $500 million sukuk to support infrastructure and budget financing.
The House of Representatives has given approval for President Bola Tinubu to obtain $2.35 billion in external loans to help reduce Nigeria’s 2025 budget deficit.
Lawmakers also agreed to the plan for a $500 million sovereign sukuk to be issued in the international market. The fundraising will support new infrastructure projects and broaden the country’s financing options.
The approvals were granted on Wednesday after the House adopted a report from its Committee on Aids, Loans and Debt Management.
Under the 2025 Appropriation Act, the House backed fresh external borrowing of about N1.84 trillion, which is around $1.23 billion at the budget rate of N1,500 to a dollar. The funds are expected to support part of the projected N9.28 trillion deficit.
President Tinubu had earlier written to the National Assembly seeking approval as required by the Debt Management Office Act. He said the loans could come through Eurobonds, syndicated credit, or temporary bridge financing based on market conditions. Interest rates are expected to match the yields on Nigeria’s current international bonds, which stand between 6.8 and 9.3 percent.
On the planned $500 million sukuk, Tinubu noted that it would attract new investors to the country’s debt market and help finance key infrastructure. He recalled that domestic sukuk sales since 2017 have raised over N1.39 trillion for major road and capital projects. A portion of the proceeds, up to 25 percent, may be used to refinance older and more costly debts.
With the approvals now in place, the Federal Government can move ahead with its borrowing plans for the year.
