Reps Approve Tinubu’s ₦1.84 Trillion Loan Request to Fund Budget Deficit

The House of Representatives has granted approval for President Bola Ahmed Tinubu’s request to implement a new external borrowing plan of ₦1.84 trillion (approximately $1.23 billion) as provided in the 2025 Appropriation Act, to help bridge Nigeria’s widening budget deficit.

The approval followed the adoption of a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Abubakar Hassan Nalaraba, during plenary on Wednesday.

According to the committee, the loan will contribute to financing the ₦9.27 trillion deficit projected in the 2025 fiscal framework.

To ease repayment pressure and strengthen Nigeria’s debt sustainability, the House also approved the refinancing of a $1.12 billion Eurobond (7.625% USD1.118bn due November 2025). Lawmakers explained that this refinancing would help the country avoid a debt servicing crisis and minimize exposure to volatility in external debt markets.

In addition, the House endorsed the federal government’s plan to raise $2.35 billion through various international financing options, including Eurobond issuance, loan syndications, bridge financing, and other external borrowings from global financial institutions. The resolution stated that this flexible approach will help meet funding needs while diversifying borrowing sources.

To attract Islamic-compliant investors and diversify Nigeria’s debt instruments, lawmakers further approved the issuance of a $500 million debut stand-alone Sovereign Sukuk in the international capital market. The Sukuk, which may be issued with or without credit enhancement, is expected to boost investor confidence and complement Nigeria’s existing domestic Sukuk programme used for infrastructure financing.

The new borrowing plan aligns with President Tinubu’s fiscal strategy aimed at:

Strengthening Nigeria’s foreign reserves,
Stabilising the naira,
Funding critical infrastructure, and
Managing rising debt obligations.

Lawmakers noted that the borrowing framework is designed to reduce fiscal pressure, attract diverse investments, and strike a balance between debt servicing and economic development.

While Nigeria’s public debt continues to rise—raising concerns among analysts over growing reliance on external loans—proponents of the plan argue that strategic borrowing is vital to sustain capital projects, spur growth, and reinforce investor confidence in the nation’s fiscal management.

The House emphasized the need for prudent debt management and transparency in the utilization of borrowed funds to ensure accountability and long-term economic stability.