President Bola Ahmed Tinubu has requested the approval of the National Assembly to borrow a total of $2.347 billion to finance part of the 2025 national budget and refinance existing debt.
The president is also seeking legislative backing to issue Nigeria’s first $500 million sovereign Sukuk on the international market.
The requests were contained in a letter read by Speaker of the House of Representatives, Tajudeen Abbas, during plenary on Tuesday.
According to the president, the borrowing is necessary to address budgetary shortfalls and meet Nigeria’s upcoming Eurobond repayment obligations.
The proposed loans are expected to be sourced through a mix of multilateral, bilateral, and commercial creditors, including syndicated loans and international capital markets.
Breakdown of the Request
$1.229 billion of the proposed loan will fund capital projects in the 2025 budget, as provided in the Appropriation Act.
$1.118 billion is earmarked to refinance Nigeria’s maturing Eurobond due in November 2025.
The $500 million sovereign Sukuk will be issued to diversify Nigeria’s funding sources, with up to 25% of proceeds allocated to reducing existing high-interest debt.
President Tinubu explained that the borrowing plan aligns with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act 2003, which mandates National Assembly approval for all external loans.
He added that the financing instruments would be selected based on market conditions and may include credit guarantees from institutions such as the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), to enhance Nigeria’s credit profile.
House Refers Request to Committee
Following the reading of the letter, Speaker Abbas referred the request to the House Committee on Aids, Loans, and Debt Management for further legislative action.
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No debate took place at the time of the reading, but lawmakers are expected to deliberate on the details in the coming days.
Next Steps
The House Committee is expected to engage with relevant ministries and the Debt Management Office before submitting its recommendations for a vote.
If approved, the loans would form a key component of the government’s medium-term external borrowing strategy, even as the Tinubu administration continues to seek new avenues for infrastructure financing and economic recovery.
