The House of Representatives has approved President Bola Tinubu’s request to raise $2.347 billion from the international capital arket to part-finance Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The approval came after the House considered and adopted a report by 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 report, the external borrowing will include $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025. The borrowing component represents about N1.84 trillion at the budget exchange rate of N1,500 to a dollar.
Lawmakers authorised the Federal Government to access the funds through Eurobond issuance, loan syndication, bridge finance facilities, or direct borrowing from international financial institutions.
In addition, the House approved the President’s proposal to issue Nigeria’s first-ever Sovereign Sukuk worth up to $500 million in the international capital market, with or without a credit guarantee.
Tinubu had explained in his letter to the National Assembly that the borrowing plan was necessary to bridge the gap between projected revenue and expenditure for the 2025 fiscal year and to meet obligations on existing debts due next year.
