Nigeria’s House of Representatives has approved President Bola Tinubu’s request to implement a new external borrowing plan totalling N1.84 trillion as provided in the 2025 Appropriation Act to help finance the national budget deficit.
The approval followed the consideration and approval of the report presented by the Chairman of the House Committee on Aids, Loans and Debt Management, Abubakar Hassan Nalaraba, during Wednesday’s plenary.
According to the committee’s recommendations, the loan will partly finance the N9.27 trillion budget deficit contained in the 2025 fiscal plan.
The refinancing of a maturing Eurobond valued at $1.12 billion pegged at 7.625% at $1.118 billion due by November 2025 to reduce repayment pressure and stabilise Nigeria’s external debt position was also approved by the House
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Lawmakers also granted approval for the Federal Government to access $2.35 billion through multiple international financing options, including Eurobond issuance, loan syndications, bridge financing facilities, and other forms of external borrowing from reputable global financial institutions.
To diversify Nigeria’s debt instruments and attract Islamic-compliant investors, the House further approved the issuance of $500 million debut stand-alone Sovereign Sukuk in the international capital market, with or without credit enhancement.
The new borrowing plan, according to the House resolution, aligns with President Tinubu’s broader fiscal strategy to strengthen foreign reserves, stabilise the Naira, and fund key infrastructure projects while managing the country’s rising debt obligations.
(Editor: Terverr Tyav)
