The Home of Representatives on Wednesday authorized President Bola Tinubu’s request to safe a complete of $2.347bn from the worldwide capital market to part-finance the 2025 funds deficit and refinance maturing Eurobonds.
The approval adopted the consideration and adoption of a report offered by the Home Committee on Aids, Loans, and Debt Administration, chaired by Hon. Abubakar Hassan Nalaraba, throughout plenary presided over by Speaker Tajudeen Abbas.
Since assuming workplace in Might 2023, President Bola Tinubu’s administration has secured substantial exterior financing to help authorities programmes and monetary operations.
Between Might 2023 and Might 2025, Nigeria obtained roughly $7.2bn in exterior loans from the World {Bank}, aimed toward bolstering key {economic} reforms and improvement initiatives. As well as, the federal government acquired approval for a $1 billion facility from the African Improvement {Bank}, anticipated to be disbursed between 2024 and 2025.
Additional strengthening its exterior financing portfolio, the Home of Representatives in October 2025 authorized a brand new borrowing plan, together with $1.23bn to part-finance the 2025 funds and a $500m debut Sovereign Sukuk to be issued within the worldwide capital market.
These financing initiatives type a part of the administration’s broader technique to bridge funds deficits, refinance maturing money owed, and stimulate {economic} development by means of focused investments.
Based on the committee’s report, “The brand new borrowing plan contains $1.23bn to fund the 2025 funds deficit and $1.12bn to refinance Nigeria’s Eurobond maturing in November 2025.”
The Deputy Speaker, Benjamin Kalu, who presided over the Committee on Provide the place the report was thought-about, put the request earlier than the Home at plenary.
“The Committee on Provide thought-about the request of Mr President and made these suggestions. Can we settle for these suggestions,” he requested, to which members replied within the affirmative.
Adopting the suggestions of the committee, the Home authorised the Federal Authorities to “Implement the exterior borrowing part of the 2025 Appropriation Act amounting to ₦1.84tn (roughly $1.23bn) on the funds trade fee of ₦1,500 to $1.”
Lawmakers additionally authorized for the federal government to entry the loans by means of Eurobond issuance, mortgage syndication, bridge financing amenities, or direct borrowing from worldwide {financial} establishments.
As well as, the Home endorsed President Tinubu’s proposal to difficulty Nigeria’s first-ever Sovereign Sukuk bond of as much as $500m within the worldwide capital market, with or with no credit score assure.
Recall that President Tinubu, in his earlier correspondence to the Nationwide Meeting, defined that the borrowing plan was essential to bridge the hole between projected income and expenditure within the 2025 fiscal 12 months and to allow the federal government to satisfy its debt obligations as they fall due.