The House of Representatives has approved President Bola Tinubu’s plan to secure over $2.3 billion in external loans to partly fund Nigeria’s 2025 budget deficit, refinance maturing Eurobonds, and float the nation’s first-ever sovereign Sukuk in the international market.
The approval came after lawmakers considered a report from the House Committee on Aids, Loans, and Debt Management, presented by its chairperson, Abubakar Nalaraba (APC–Nasarawa), during plenary on Wednesday. The report, submitted a day earlier, sought legislative backing for the federal government’s external borrowing and refinancing strategy outlined in the 2025 Appropriation Act.
Breakdown of the borrowing plan
According to the committee, the new borrowing will total ₦1.84 trillion (approximately $1.23 billion) at the benchmark exchange rate of ₦1,500 to $1, to help finance the ₦9.27 trillion budget deficit.
The panel also urged lawmakers to approve the refinancing of $1.12 billion Eurobonds due in November 2025 to safeguard Nigeria’s credit rating and ensure timely repayment.
In total, the committee recommended authorising an aggregate external capital of $2.35 billion, which includes the new borrowing and Eurobond refinancing. The funds are to be raised through one or more of the following means: Eurobond issuance, loan syndications, bridge-financing facilities, or direct borrowing from international lenders.
Additionally, the committee proposed issuing a $500 million sovereign Sukuk in the international capital market — Nigeria’s debut Islamic bond — either with or without credit enhancement.
While the report was being considered, Deputy Majority Leader Abdullahi Halims (APC–Kogi) objected to its immediate adoption, arguing that members needed more time to study the technical aspects of the borrowing plan.
However, Speaker Abbas Tajudeen disagreed, urging Halims to withdraw his objection. “On a subject that is not mutually agreed, I’m really not happy with your comments,” the Speaker said. Halims later withdrew his motion, allowing the House to proceed with the approval.
The recommendations were subsequently adopted by the Committee of Supply and ratified by the full House, giving the executive the green light to execute the borrowing plan.
President Tinubu first sought legislative approval for the external borrowing in a letter dated 22 September 2025, read by Speaker Tajudeen on 7 October.
In the letter, the president explained that the borrowing plan was aimed at covering the ₦9.27 trillion budget deficit — which includes ₦7.43 trillion in domestic loans and ₦1.84 trillion in external financing — and refinancing the maturing $1.12 billion Eurobond.
He added that the $500 million sovereign Sukuk would mark Nigeria’s first Islamic bond offering on the global stage, designed to attract ethical investors and diversify the country’s financing sources.
