The National Assembly has approved President Bola Tinubu’s request to secure $2.347 billion in external loans from the international capital market. The loan will be used to part-finance the 2025 budget deficit and refinance maturing Eurobonds.
Additionally, the lawmakers approved the president’s proposal to issue a $500 million debut sovereign sukuk in the international capital market to fund infrastructure projects and diversify Nigeria’s financing sources.
The approval was granted after the House Committee on Aids, Loans, and Debt Management presented its report, which was adopted by the House of Representatives.
The committee, chaired by Hon. Abubakar Hassan Nalaraba, reviewed the loan request and recommended its approval.
According to the breakdown, $1.23 billion will be used to fund the 2025 budget deficit, while $1.12 billion will be used to refinance Nigeria’s Eurobond maturing in November 2025.
The sovereign sukuk will attract new investors to the country’s debt market and help finance key infrastructure projects.
The loan approval is part of President Tinubu’s efforts to close the fiscal gap in the 2025 budget and ensure that Nigeria meets its maturing debt obligations.
The funds will be raised through Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.
