National Assembly Approves $2.347bn Foreign Loans, $500m Sovereign Sukuk to Fund 2025 Budget and Refinance Eurobonds

The National Assembly on Wednesday approved President Bola Tinubu’s request to secure $2.347 billion in foreign loans to help finance the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds. The approval, granted separately by the Senate and the House of Representatives, also included authorisation for the issuance of a $500 million debut Sovereign Sukuk in the international capital market.

In the House of Representatives, the approval followed the adoption of a report by the Committee on Aids, Loans, and Debt Management, chaired by Abubakar Nalaraba, during plenary presided over by Speaker Tajudeen Abbas. The report indicated that $1.23 billion would be used to fund the 2025 budget deficit, while $1.12 billion would refinance Eurobonds maturing in November 2025. The House authorised the Federal Government to access these funds through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions.

Similarly, the Senate approved Tinubu’s request for a total of $2.847 billion in fresh foreign loans, including the $500 million Sovereign Sukuk, after adopting a report from its Committee on Local and Foreign Debts, chaired by Senator Wamakko Aliyu (APC, Sokoto North). Of this amount, $2.347 billion will be raised from the international capital market to part-finance the 2025 budget, while the $500 million Sukuk will fund key infrastructure projects nationwide.

The approval comes amid rising public concern over Nigeria’s debt, which the Debt Management Office recently estimated at over N97 trillion as of mid-2025. While critics warn of mounting fiscal pressure, government officials argue that strategic borrowing is essential to sustain economic growth, bridge infrastructure gaps, and maintain investor confidence.

Senator Wamakko emphasised that the borrowing plan is crucial for project continuity and safeguarding Nigeria’s international credit reputation. Supporting the motion, Senator Sani Musa (APC, Niger East), Chairman of the Senate Committee on Finance, said the approval is critical for implementing the 2025 Appropriation Bill.

Senator Adetokunbo Abiru (APC, Lagos East), Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, clarified that the borrowing would not increase Nigeria’s debt stock but would refinance existing obligations. “This is a compliance measure because the 2025 Appropriation Act already included it as part of deficit financing. The second request ensures the country does not default on Eurobond servicing,” he explained. Meanwhile, Senator Adams Oshiomhole (APC, Edo North), Chairman of the Senate Committee on Interior, noted that well-structured loans could stimulate economic growth and create jobs.