Reps Approve Tinubu’s $2.34 Billion Foreign Borrowing Request

The House of Representatives has approved President Bola Ahmed Tinubu’s request to obtain $2.347 billion from the international capital market to help fund the 2025 budget deficit and refinance maturing Eurobonds.

The approval came after the House adopted the report of the Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during Wednesday’s plenary session presided over by Speaker Tajudeen Abbas.

According to the committee’s report, the external borrowing will consist of $1.23 billion to finance the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.

The House authorized the Federal Government to proceed with the external borrowing component of the 2025 Appropriation Act, estimated at ₦1.84 trillion (approximately $1.23 billion) based on the approved budget exchange rate of ₦1,500 per dollar.

Lawmakers also approved multiple borrowing options, including Eurobond issuance, loan syndication, bridge financing, and direct borrowing from international financial institutions.

In addition, the House endorsed the President’s proposal to float Nigeria’s first-ever Sovereign Sukuk in the international capital market, valued at up to $500 million, with or without a credit guarantee.

President Tinubu had explained in his letter to the National Assembly that the borrowing plan was vital to cover the shortfall between projected revenues and planned expenditures for the 2025 fiscal year. He added that the facility would also ensure the government meets its debt obligations as existing bonds reach maturity.

The approval marks another major step in the administration’s effort to stabilize the economy, sustain capital projects, and manage Nigeria’s debt profile responsibly.