The House of Representatives has approved President Bola Tinubu’s request to borrow $2.347 billion from the international capital market to part-finance Nigeria’s 2025 budget deficit and refinance maturing Eurobonds.
The approval was granted on Wednesday, October 29, after the adoption of a report by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during a plenary session presided over by Speaker Tajudeen Abbas.
According to the report, “The new borrowing plan comprises $1.23 billion to fund the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.”
The Deputy Speaker, Benjamin Kalu, who chaired the Committee on Supply during the consideration of the report, presented the committee’s recommendations to the House
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“The Committee on Supply considered the request of Mr President and made these recommendations. Do we accept these recommendations,” Kalu asked, to which lawmakers responded in the affirmative.
With the approval, the Federal Government is authorised to implement the external borrowing component of the 2025 Appropriation Act amounting to ₦1.84 trillion (about $1.23 billion) at the budget exchange rate of ₦1,500 to $1.
The House also permitted the government to raise funds through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions.
In addition, lawmakers endorsed President Tinubu’s plan to issue Nigeria’s first-ever $500 million Sovereign Sukuk bond in the international capital market, with or without a credit guarantee.
President Tinubu had earlier told the National Assembly that the borrowing plan was essential to close the gap between projected revenues and expenditure in the 2025 fiscal year, as well as to meet debt repayment obligations.