The House of Representatives has approved President Bola Tinubu’s request to obtain $2.347 billion in external loans aimed at bridging Nigeria’s 2025 budget deficit and refinancing maturing Eurobonds.
The approval followed the consideration and adoption of a report submitted by the House Committee on Aids, Loans, and Debt Management during plenary.
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According to the approved breakdown, $1.23 billion will be used to finance the 2025 budget deficit, while $1.12 billion is earmarked to refinance a Eurobond scheduled to mature in November 2025.
Lawmakers also gave their consent to the President’s plan to issue Nigeria’s first-ever $500 million Sovereign Sukuk bond in the international capital market. The bond is expected to support key infrastructure projects and broaden the country’s funding base.
These financing initiatives form part of the administration’s wider fiscal strategy to manage the nation’s debt obligations, stimulate growth, and strengthen economic stability. Since assuming office in May 2023, President Tinubu’s government has secured multiple funding partnerships, including about $7.2 billion from the World Bank and a $1 billion facility from the African Development Bank.
The approved loans are to be raised through diverse instruments such as Eurobond issuance, syndicated loans, bridge financing facilities, and direct borrowing from international financial institutions, all targeted at driving Nigeria’s development and sustaining its economic reform agenda.
