The House of Representatives has given the green light to President Bola Ahmed Tinubu’s request for a fresh external borrowing plan amounting to ₦1.84 trillion (about $1.23 billion).
The new loan, which forms part of the 2025 Appropriation Act, is aimed at financing Nigeria’s growing budget deficit.
The approval came after the House considered and adopted the report presented by the Committee on Aids, Loans and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary on Wednesday.
According to the committee’s report, the ₦1.84 trillion loan will partly finance the ₦9.27 trillion deficit projected in the 2025 fiscal plan.
Beyond that, lawmakers also approved the refinancing of a maturing Eurobond worth $1.12 billion (7.625% USD1.118bn due November 2025). This move, they said, would ease repayment pressure and help stabilize the country’s external debt profile.
In a broader effort to secure more flexible financing, the House further authorized the federal government to access $2.35 billion through a mix of Eurobond issuances, syndicated loans, bridge financing facilities, and other external funding sources from reputable international financial institutions.
To widen Nigeria’s appeal to diverse investors, particularly within Islamic finance markets, the House also approved the issuance of a $500 million debut Sovereign Sukuk in the international capital market.
The Sukuk may be issued with or without credit enhancement, depending on market conditions.
According to the resolution, the new borrowing plan aligns with President Tinubu’s broader fiscal strategy to bolster foreign reserves, stabilize the naira, fund key infrastructure projects, and manage the nation’s rising debt obligations more sustainably.
If you’d like, I can make a slightly more narrative or analytical version (like what you’d read in BusinessDay or Premium Times) with some context on Nigeria’s debt outlook and what this might mean politically or economically. Would you like that?