The House of Representatives Wednesday approved President Bola Tinubu’s request to borrow $2.36billion to finance part of the 2025 budget deficit.
The approval, which was granted following the consideration and adoption of the report of the House Committee on Aids, Loans, and Debt Management at the plenary presided over by Deputy Speaker Benjamin Kalu.
Apart from the approval of $2.35bn, the House also approved the issuance of a $500 million debut sovereign sukuk in the international capital market (ICM).
The sukuk, will be used to fund critical infrastructure projects across the country while broadening Nigeria’s access to alternative financing sources.
According to the committee’s report, the $2.35 billion loan is part of the federal government’s plan to bridge the funding gap in the 2025 appropriation bill and sustain key development programmes in sectors such as transport, power, agriculture, health, and education.
Chairman of the committee, Hon. Nalaraba Abubakar Hassan emphasised that the decision aligns with the government’s medium-term debt management strategy, which seeks to optimize Nigeria’s debt portfolio by combining both concessional and market-based financing options.
This approval is coming at a time concerns have been raised about Nigeria’s rising debt profile, which the Debt Management Office (DMO) recently put at over ₦121 trillion as of mid-2025.
Although, the federal government has continuously maintained that the new loans are necessary to stimulate growth, attract investment, and deliver essential infrastructure to Nigerians.
Recall that President Tinubu had on October 8 written to the House seeking the approval of a fresh $2.35 billion external borrowing, as well as a plan to issue $500 million sovereign SUKUK.
