National Assembly approves Tinubu’s $2.347bn foreign loan request

Nigeria’s National Assembly has given the green light to President Bola Ahmed Tinubu’s request to secure $2.347 billion from the international capital market as part of efforts to fund the 2025 budget deficit and refinance maturing Eurobond obligations.

The approval also includes a plan by the Federal Government to issue a $500 million debut sovereign sukuk on the international capital market. According to lawmakers, the sukuk issuance will support key infrastructure development projects and expand Nigeria’s funding options beyond traditional borrowing channels.

The approval followed the consideration of reports from the Senate and House committees on Aids, Loans, and Debt Management.

In the House of Representatives, the report was presented by the committee’s chairman, Hon. Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.

The lower chamber approved the implementation of the new external borrowing of N1.84 trillion (about $1.23 billion) at a budget exchange rate of $1/N1,500 as provided in the 2025 Appropriation Act to partly finance the budget deficit of N9.27 trillion.

President Tinubu had earlier sought parliamentary consent for the loans, citing sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new borrowings and refinancing arrangements.

According to the President, the funds will be raised through one or a mix of instruments, including Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions.