The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion and issue a $500 million sovereign sukuk to support the financing of Nigeria’s 2025 budget deficit and fund key infrastructure projects.
The approvals followed the adoption of a report presented by the House Committee on Aids, Loans, and Debt Management during Wednesday’s plenary session.
According to the resolution, lawmakers endorsed the implementation of a new external borrowing of N1.84 trillion (equivalent to $1.23 billion) at a budget exchange rate of N1,500 per dollar, as provided in the 2025 Appropriation Act. The borrowing will help finance part of the federal deficit projected at N9.28 trillion.
President Tinubu had earlier sought the National Assembly’s consent in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandate legislative approval for all external borrowings.
In his letter, the President explained that the loans may be raised through Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions. He said pricing for the proposed Eurobond issuance would align with yields on Nigeria’s existing international bonds, currently between 6.8 per cent and 9.3 per cent.
On the $500 million sovereign sukuk, Tinubu said the initiative would attract new classes of investors, diversify the government’s financing options, and deepen Nigeria’s securities market.
Proceeds from the sukuk will be channelled into critical infrastructure projects nationwide, with up to 25 per cent earmarked for repaying high-cost existing debt.
Tinubu noted that Nigeria has already raised over N1.39 trillion through domestic sukuk issuances between 2017 and 2025 to fund major road and infrastructure works. The proposed international sukuk, he added, will complement those domestic efforts and open new funding channels for the federal government.
“It is imperative to open new sources of funding and deepen the FGN securities market,” the President said.
