Abuja — The House of Representatives has approved President Bola Tinubu’s request to secure $2.35 billion in foreign loans to help finance part of the 2025 budget deficit.
The lawmakers also endorsed the President’s proposal to issue a $500 million debut sovereign sukuk in the international capital market — a move aimed at funding key infrastructure projects and expanding Nigeria’s financing options.
The approval followed the adoption of a report from the House Committee on Aids, Loans and Debt Managementduring Thursday’s plenary.
According to the committee’s report, the green chamber approved a new external borrowing of ₦1.84 trillion(approximately $1.23 billion) at the budget exchange rate of ₦1,500 per dollar, as provided in the 2025 Appropriation Act, to help bridge the ₦9.27 trillion budget deficit.
Earlier this month, President Tinubu sought legislative approval in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandate National Assembly authorization for all new borrowings.
Tinubu explained that the funds would be raised through eurobonds, syndicated loans, or bridge financing facilities, depending on prevailing global market conditions. He noted that the pricing of the eurobonds would align with Nigeria’s current international bond yields, estimated between 6.8% and 9.3%, depending on maturity.
On the planned $500 million sovereign sukuk, the President said the initiative would help diversify Nigeria’s investor base, deepen the domestic capital market, and attract Islamic finance investors. The proceeds, he added, would be directed toward the development of critical infrastructure projects across the country.
Tinubu further disclosed that Nigeria had successfully raised over ₦1.39 trillion through domestic sukuk issuances between 2017 and 2025, which were used to fund major road and infrastructure projects. The external sukuk, he noted, would complement these efforts.
“It is imperative to open new funding channels for the federal government and deepen the FGN securities market,” the President stated in his letter to the National Assembly.
He added that 25% of the sukuk proceeds might be used to repay high-cost debts, while the remainder would be invested in infrastructure financing.
The new borrowing plan, according to the Presidency, forms a key part of Tinubu’s fiscal strategy to strengthen foreign reserves, stabilize the naira, and fund critical development projects, despite growing debt service obligations.
With the House’s approval, the federal government can now begin implementing the external financing componentsof the 2025 Appropriation Act.
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