President Bola Ahmed Tinubu’s request to implement a new external borrowing plan totaling ₦1.84 trillion (approximately $1.23 billion) as provided in the 2025 Appropriation Act to help finance the national budget deficit has been approved by the house of Represenstatives on Wednesday,
The House also approved $500m Sovereign Sukuk loan request too.
It was gathered that the approval followed the consideration and adoption of the report presented by the House Committee on Aids, Loans and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary on Wednesday.
According to the committee’s recommendations, the loan will partly finance the ₦9.27 trillion budget deficit contained in the 2025 fiscal plan.
In addition, the House approved the refinancing of a maturing Eurobond valued at $1.12 billion (7.625% USD1.118bn due November 2025) to reduce repayment pressure and stabilize Nigeria’s external debt position.
Lawmakers also granted approval for the federal government to access $2.35 billion through multiple international financing options — including Eurobond issuance, loan syndications, bridge financing facilities, and other forms of external borrowing from reputable global financial institutions.
To diversify Nigeria’s debt instruments and attract Islamic-compliant investors, the House further approved the issuance of a $500 million debut stand-alone Sovereign Sukuk in the international capital market, with or without credit enhancement.
The new borrowing plan, according to the resolution, aligns with President Tinubu’s broader fiscal strategy to strengthen foreign reserves, stabilize the naira, and fund key infrastructure projects while managing the country’s rising debt obligations.
