Nigeria’s National Assembly has granted approval for President Bola Tinubu to raise $2.347 billion from international lenders to finance the 2025 budget deficit and refinance maturing Eurobonds.
The legislative approval also includes the issuance of a $500 million debut sovereign sukuk in the international capital market to fund major infrastructure projects and diversify the country’s funding sources.
The decision followed the adoption of reports from both the Senate and the House of Representatives Committees on Aids, Loans, and Debt Management. In the lower chamber, Speaker Tajudeen Abbas presided over the plenary where the report was presented by Hon. Abubakar Hassan Nalaraba.
According to the report, lawmakers approved a new external borrowing of ₦1.84 trillion (equivalent to $1.229 billion) at the exchange rate of ₦1,500 per dollar as stipulated in the 2025 Appropriation Act. The funds will help bridge the ₦9.27 trillion budget deficit.
President Tinubu had earlier sought legislative backing, citing sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require parliamentary approval for all new external borrowings.
He noted that the loans would be sourced through various instruments, including Eurobonds, syndicated loans, or bridge financing facilities, depending on prevailing global market conditions.
Analysts say the approval marks a key step toward strengthening Nigeria’s fiscal capacity and ensuring the timely execution of the 2025 budget.
