The House of Representatives on Wednesday approved President Bola Ahmed 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 Nigeria’s 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, the Tinubu administration has pursued a series of external financing initiatives to support government programmes, fiscal operations, and economic reforms. Between May 2023 and May 2025, Nigeria obtained approximately $7.2 billion in external loans from the World Bank to bolster critical economic and development projects. The government also secured approval for a $1 billion facility from the African Development Bank, expected to be disbursed between 2024 and 2025.
Further strengthening its external financing portfolio, the House had in October 2025 approved a new borrowing plan, including $1.23 billion to support the 2025 budget and a $500 million debut Sovereign Sukuk to be issued in the international capital market.
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 where the report was considered, presented the recommendations before the House at plenary.
“The Committee on Supply considered the request of Mr President and made these recommendations. Do we accept these recommendations?” Kalu asked, to which members responded in the affirmative.
Adopting the committee’s recommendations, 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 approved that the loans be accessed through Eurobond issuance, loan syndication, bridge financing facilities, or direct borrowing from international financial institutions.
In addition, the House endorsed President Tinubu’s proposal to issue Nigeria’s first-ever Sovereign Sukuk bond of up to $500 million in the international capital market, with or without a credit guarantee.
Recall that in his earlier correspondence to the National Assembly, President Tinubu 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.
