The Nigerian National Assembly has approved President Bola Tinubu’s request to raise $2.347 billion from the international capital market. The proceeds will be used to partially finance the 2025 budget deficit and to refinance maturing Eurobonds. In addition, the Assembly authorized a $500 million debut sovereign sukuk to be issued abroad, with the funds earmarked for infrastructure projects and for diversifying Nigeria’s financing sources.
The approval followed the House of Representatives’ adoption of a report from the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba. The report was presented during a plenary session presided over by Speaker Tajudeen Abbas and took into account the provisions of the 2025 Appropriation Act, which includes new external borrowing of N1,843,669,786,987.16 (approximately $1,229,113,000 at the budget exchange rate of $1 = N1,500).
President Tinubu’s loan request was justified by the need to partially finance a budget deficit of N9,276,348,934,935.79. He noted that the external borrowing is supported by sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act 2003, which require legislative approval for new loans and refinancing arrangements. The funds will be raised through a mix of instruments—Eurobonds, loan syndications, or bridge‑financing facilities—depending on prevailing market conditions.
The approval of the loan request is significant because it will enable the Nigerian government to access much‑needed resources to cover its budget shortfall and refinance maturing debt. The issuance of the debut sovereign sukuk will also allow the country to diversify its financing sources and attract investment from the international market. The next steps involve implementing the new external borrowing and issuing the sukuk, both expected to have a positive impact on Nigeria’s economy.
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