The Nigerian House of Representatives has officially approved President Bola Ahmed Tinubu’s request to secure a $2.35 billion external loan and issue a $500 million debut sovereign Sukuk in the international capital market. The decision marks a significant step in the administration’s strategy to finance the 2025 budget deficit and invest in critical infrastructure projects.
The approval followed the adoption of a report presented by the House Committee on Aids, Loans and Debt Management during plenary on Wednesday. The committee, chaired by Hon. Abubakar Hassan Nalaraba, endorsed the borrowing plan as part of efforts to stabilize Nigeria’s fiscal position and broaden access to alternative financing sources.
President Tinubu had earlier written to the National Assembly citing provisions of the Debt Management Office (Establishment) Act, 2003, which mandates legislative approval for external borrowing. The Sukuk issuance, a first of its kind for Nigeria in the global market, is expected to attract ethical investors and support long-term development goals.
Lawmakers also approved the refinancing of a maturing Eurobond valued at $1.12 billion, due in November 2025, to reduce repayment pressure and improve Nigeria’s external debt sustainability.