The House of Representatives on Wednesday approved President Bola Tinubu’s request to secure a total of $2.347 billion from the international capital market to part-finance the 2025 budget deficit and refinance maturing Eurobonds.
The approval followed the consideration and adoption of a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.
Since assuming office in May 2023, President Tinubu’s administration has relied on external financing to support critical government programmes and fiscal operations.
Between May 2023 and May 2025, Nigeria obtained approximately $7.2 billion in external loans from the World Bank, targeted at bolstering economic reforms and development initiatives. The government also secured approval for a $1 billion facility from the African Development Bank (AfDB), expected to be disbursed between 2024 and 2025.
In a related move, the House in October 2025 approved another borrowing plan comprising $1.23 billion to part-finance the 2025 budget and a $500 million debut Sovereign Sukuk bond to be issued in the international capital market.
These financing initiatives form part of the administration’s broader fiscal strategy to bridge budget deficits, refinance maturing debts, and stimulate economic growth through targeted investments.
According to the committee’s report, “The new borrowing plan comprises $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.”
The Deputy Speaker, Benjamin Kalu, who presided over the Committee on Supply, presented the request before the House at plenary.
“The Committee on Supply considered the request of Mr President and made these recommendations. Do we accept these recommendations?” he asked.
The lawmakers unanimously responded in the affirmative, adopting the recommendations of the committee.
Following the approval, the House authorised the Federal Government to implement the external borrowing component of the 2025 Appropriation Act, amounting to ₦1.84 trillion (approximately $1.23 billion) at the budget exchange rate of ₦1,500 to $1.
Lawmakers also granted the government permission to access the loans through Eurobond issuance, loan syndication, bridge financing facilities, or direct borrowing from international financial institutions.
Additionally, the House endorsed President Tinubu’s proposal to issue Nigeria’s first-ever Sovereign Sukuk bond, valued at up to $500 million, in the international capital market, with or without a credit guarantee.
It would be recalled that President Tinubu, in his earlier correspondence to the National Assembly, explained that the borrowing plan was necessary to bridge the gap between projected revenue and expenditure in the 2025 fiscal year and to enable the government to meet its debt obligations as they mature.
