The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion from the international capital market to finance part of the 2025 budget deficit and refinance maturing debts.
The approval, granted on Wednesday, also authorises the issuance of a $500 million debut Sovereign Sukuk, Nigeria’s first-ever Islamic bond offering in the international market, to fund key infrastructure projects and diversify the country’s access to non-traditional financing sources.
This followed the consideration and adoption of the report by the House Committee on Aids, Loans and Debt Management, which recommended the implementation of a new external borrowing of ₦1.84 trillion (approximately $1.23 billion) at the official budget exchange rate of ₦1,500 per dollar, as stipulated in the 2025 Appropriation Act.
President Tinubu had earlier outlined the borrowing strategy in a letter to the National Assembly, seeking legislative approval to raise a total of $2.347 billion through Eurobonds, syndicated loans, bridge financing, or direct borrowing from multilateral institutions.
According to the president, the funds will be used to part-finance the ₦9.27 trillion budget deficit, refinance the $1.118 billion Eurobond maturing in November 2025, and strengthen Nigeria’s credit standing in global markets.
“The plan is to refinance the maturing Eurobonds through issuance of Eurobonds, bridge finance facility, loan syndication, or direct borrowing from international financial institutions,” Tinubu said in his letter.
He added that the $1.229 billion in new borrowing and $1.118 billion for refinancing will be executed under the supervision of the Federal Ministry of Finance and the Debt Management Office (DMO), which will work with transaction advisers to secure “the most favourable terms” available in the market.
The president said the $500 million international Sukuk will replicate the success of domestic issuances that have raised over ₦1.39 trillion since 2017 for road and infrastructure development, while also aiming to diversify Nigeria’s investor base and deepen the sovereign securities market.
“The debut international Sukuk will open new funding sources and demonstrate Nigeria’s commitment to innovative, ethical, and inclusive financing,” Tinubu explained.
The move comes amid rising concerns over Nigeria’s public debt, which has continued to grow due to persistent fiscal deficits and heavy reliance on borrowings to fund development projects.
With this latest approval, the federal government is expected to begin engagements with international investors in the coming weeks to actualize the borrowing plan.
