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House of Reps okays $2.35bn borrowing plan to fund 2025 budget and refinance Eurobonds.
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Approval forms part of Tinubu’s fiscal strategy to close deficit and sustain economic programmes.
The House of Representatives has approved President Bola Ahmed Tinubu’s request to obtain $2.347 billion from the international capital market to finance part of the 2025 budget deficit and refinance maturing Eurobonds.
The approval followed the consideration and adoption of a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Hon Abubakar Hassan Nalaraba, during Wednesday’s plenary presided over by Speaker Tajudeen Abbas.
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According to the committee report, the borrowing plan includes $1.23 billion to fund the 2025 budget and $1.12 billion to refinance Nigeria’s Eurobond maturing in November 2025.
The decision is part of the administration’s fiscal strategy to stabilise the economy and manage public debt more efficiently.
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Deputy Speaker Benjamin Kalu, who chaired the Committee on Supply during the plenary, put the recommendations to the House, which were unanimously adopted.
By this approval, the Federal Government has been authorised to implement the external borrowing component of the 2025 Appropriation Act amounting to ₦1.84 trillion (approximately $1.23 billion) at the budget exchange rate of ₦1,500 to $1.
Lawmakers further endorsed the government’s proposal to raise the funds through Eurobond issuance, syndicated loans, bridge financing, or direct borrowing from international financial institutions.
In addition, the House approved the issuance of Nigeria’s first-ever Sovereign Sukuk bond worth up to $500 million in the international market, with or without a credit guarantee.
President Tinubu, in his earlier communication to the National Assembly, had explained that the external borrowing plan was designed to bridge the fiscal gap between revenue and expenditure while ensuring the government meets its debt obligations as they mature.
