The House of Representatives has approved President Bola Tinubu’s request to obtain $2.347 billion from the international capital market to help finance Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The approval was given on Wednesday following the consideration of a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Hon.
Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.
According to the committee’s report, the new borrowing plan consists of $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Eurobonds maturing in November 2025.
Deputy Speaker Benjamin Kalu, who led the Committee on Supply’s session, put the motion to a voice vote, and lawmakers overwhelmingly supported the recommendations.
With the House’s endorsement, the Federal Government is now authorised to implement the external borrowing component of the 2025 Appropriation Act, amounting to ₦1.84 trillion (approximately $1.23 billion), based on the budget exchange rate of ₦1,500 to a dollar.
The lawmakers also approved that the funds be raised through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions.
Additionally, the House gave the green light for Nigeria’s first-ever $500 million Sovereign Sukuk to be floated in the international capital market, with or without a credit guarantee.
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Since taking office in May 2023, President Tinubu’s administration has turned to external financing to support key economic reforms and fiscal operations.
Between May 2023 and May 2025, Nigeria secured about $7.2 billion in loans from the World Bank and a $1 billion facility from the African Development Bank (AfDB) to bolster development initiatives.
In October 2025, the House had also approved another borrowing plan that included $1.23 billion to fund the 2025 budget and the proposed $500 million Sukuk bond—moves consistent with the government’s strategy to bridge fiscal deficits and stimulate economic growth.
President Tinubu had earlier explained in his correspondence to the National Assembly that the borrowing plan was crucial to closing the gap between projected revenue and expenditure for the 2025 fiscal year and to ensure the government meets its debt obligations as they mature.