From Victor Osula, Abuja
The House of Representatives has approved President Bola Tinubu’s request to obtain a $2.35 billion external loan and issue a $500 million sovereign sukuk to fund the 2025 budget and key infrastructure projects nationwide.
The approval followed the consideration and adoption of a report presented by the House Committee on Aids, Loans, and Debt Management during plenary on Wednesday in Abuja.
Tinubu’s request, transmitted to the National Assembly earlier this month, was made in accordance with the Debt Management Office (Establishment) Act, 2003, which mandates legislative approval for external borrowing and debt issuances.
According to the President, the $2.35 billion facility will be raised through Eurobonds, syndicated loans, and other instruments, depending on market conditions and Nigeria’s debt management strategy.
The funds are expected to help finance part of the N9.27 trillion deficit in the 2025 Appropriation Act, with about N1.84 trillion (equivalent to $1.23 billion at N1,500 per dollar) earmarked for budgetary support.
The $500 million sukuk issuance will target road construction, transport infrastructure, and other developmental projects across the country.
Tinubu said the sukuk is also intended to diversify Nigeria’s investor base, deepen the domestic debt market, and attract capital from Islamic finance institutions globally.
He noted that between 2017 and 2025, the Federal Government raised over N1.39 trillion through domestic sukuk bonds, which were invested in road and capital infrastructure nationwide.
The President added that about 25 percent of the new sukuk proceeds would be used to refinance existing high-cost debt, while the remaining 75 percent would fund priority projects.
He also disclosed that yields on Nigeria’s Eurobonds currently range between 6.8 and 9.3 percent, depending on maturity, stressing that the choice of borrowing instruments would depend on global market dynamics.
Presenting its report, the House Committee on Aids, Loans, and Debt Management said the borrowing plan aligns with the Medium-Term Debt Management Strategy (2024–2027), which seeks to maintain debt sustainability while addressing fiscal and infrastructure deficits.
The House directed the Debt Management Office and the Federal Ministry of Finance to ensure transparency and accountability in the use of the borrowed funds and to prioritise projects capable of delivering measurable economic impact.
