The Nigerian House of Representatives has approved President Bola Tinubu’s request to secure $2.347 billion from the international capital market, a move aimed at bridging the 2025 budget deficit and refinancing maturing Eurobonds.
The approval came during Wednesday’s plenary session, presided over by Speaker Tajudeen Abbas, following the adoption of a report presented by Hon Abubakar Hassan Nalaraba, chairman of the House Committee on Aids, Loans, and Debt Management.
According to the committee’s findings, the borrowing plan includes two major components, including $1.23 billion to part-finance the 2025 budget deficit and $1.12 billion to refinance Nigeria’s Eurobond obligations due in November 2025.
The external borrowing aligns with the provisions of the 2025 Appropriation Act, which pegs the exchange rate at N1,500 to the dollar, translating the budgetary component to approximately N1.84 trillion.
Lawmakers also endorsed multiple financing channels for accessing the funds, including Eurobond issuance, syndicated loans, bridge financing, and direct borrowing from international financial institutions.
Notably, the House approved the issuance of Nigeria’s first-ever Sovereign Sukuk in the international capital market, with a ceiling of $500 million.
The Sukuk, which may be issued with or without a credit guarantee, is expected to diversify Nigeria’s financing options and support infrastructure development.
President Tinubu, in his letter to the National Assembly, explained the necessity of the borrowing plan to cover the shortfall between projected revenues and planned expenditures for the 2025 fiscal year.
He also stressed the importance of timely refinancing to meet Nigeria’s debt obligations and maintain fiscal stability.
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