The House of Representatives has approved President Bola Tinubu’s request to obtain a total of $2.347 billion in external loans to partially finance the 2025 budget deficit and refinance maturing Eurobonds.
The approval was granted on Wednesday following the consideration and adoption of a report submitted by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.
Grow your business with us
According to the report, the borrowing plan includes $1.23 billion earmarked to fund the 2025 budget shortfall and another $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.
By adopting the committee’s recommendations, the House gave the Federal Government the go-ahead to implement the external borrowing component of the 2025 Appropriation Act, amounting to ₦1.84 trillion (approximately $1.23 billion) at the approved exchange rate of ₦1,500 to one U.S. dollar.
Lawmakers also approved that the funds could be raised through Eurobond issuance, syndicated loans, bridge financing, or direct borrowing from international financial institutions.
In addition, the House endorsed President Tinubu’s proposal for the issuance of Nigeria’s first-ever Sovereign Sukuk bond, valued at up to $500 million, in the international capital market, either with or without a credit guarantee.
President Tinubu had earlier informed the National Assembly that the external borrowing plan was crucial to closing the fiscal gap in the 2025 budget and ensuring that Nigeria meets its maturing debt obligations.