Reps Approve Pres. Tinubu’s $2.35bn Loan Request, $500m International Sukuk for 2025 Budget
The House of Representatives has approved President Bola Tinubu’s request to secure $2.35 billion in external loans to help finance part of Nigeria’s 2025 budget deficit.
The House also approved the issuance of a $500 million sovereign sukuk in the international market to support infrastructure development & diversify government funding sources.
The approvals followed the adoption of a report by the House Committee on Aids, Loans & Debt Management during plenary on Wednesday.
In line with the 2025 Appropriation Act, the House endorsed the implementation of N1.84 trillion in new external borrowing at a budget exchange rate of N1,500/$1, to partly fund the projected N9.28 trillion federal deficit.
President Tinubu had earlier written to the National Assembly requesting approval, citing Sections 21(1) & 27(1) of the Debt Management Office Act, which require legislative consent for external borrowing.
The President stated that the loans may be raised through Eurobonds, syndicated loans, or bridge financing, depending on market conditions. He noted that interest rates would likely align with current yields on Nigeria’s existing international bonds, which range from 6.8% to 9.3%.
On the $500 million international sukuk, Tinubu explained that it would attract new investor groups, deepen Nigeria’s securities market, and fund critical infrastructure.
He added that Nigeria has already raised over N1.39 trillion through domestic sukuk issuances since 2017 for major road and capital projects, and the international sukuk would complement these efforts. Up to 25% of the funds may be used to refinance existing high-cost debt.
The approvals clear the way for the Federal Government to proceed with the financing plans.
The House of Representatives has approved President Bola Tinubu’s request to secure $2.35 billion in external loans to help finance part of Nigeria’s 2025 budget deficit.
The House also approved the issuance of a $500 million sovereign sukuk in the international market to support infrastructure development & diversify government funding sources.
The approvals followed the adoption of a report by the House Committee on Aids, Loans & Debt Management during plenary on Wednesday.
In line with the 2025 Appropriation Act, the House endorsed the implementation of N1.84 trillion in new external borrowing at a budget exchange rate of N1,500/$1, to partly fund the projected N9.28 trillion federal deficit.
President Tinubu had earlier written to the National Assembly requesting approval, citing Sections 21(1) & 27(1) of the Debt Management Office Act, which require legislative consent for external borrowing.
The President stated that the loans may be raised through Eurobonds, syndicated loans, or bridge financing, depending on market conditions. He noted that interest rates would likely align with current yields on Nigeria’s existing international bonds, which range from 6.8% to 9.3%.
On the $500 million international sukuk, Tinubu explained that it would attract new investor groups, deepen Nigeria’s securities market, and fund critical infrastructure.
He added that Nigeria has already raised over N1.39 trillion through domestic sukuk issuances since 2017 for major road and capital projects, and the international sukuk would complement these efforts. Up to 25% of the funds may be used to refinance existing high-cost debt.
The approvals clear the way for the Federal Government to proceed with the financing plans.
Reps Approve Pres. Tinubu’s $2.35bn Loan Request, $500m International Sukuk for 2025 Budget
The House of Representatives has approved President Bola Tinubu’s request to secure $2.35 billion in external loans to help finance part of Nigeria’s 2025 budget deficit.
The House also approved the issuance of a $500 million sovereign sukuk in the international market to support infrastructure development & diversify government funding sources.
The approvals followed the adoption of a report by the House Committee on Aids, Loans & Debt Management during plenary on Wednesday.
In line with the 2025 Appropriation Act, the House endorsed the implementation of N1.84 trillion in new external borrowing at a budget exchange rate of N1,500/$1, to partly fund the projected N9.28 trillion federal deficit.
President Tinubu had earlier written to the National Assembly requesting approval, citing Sections 21(1) & 27(1) of the Debt Management Office Act, which require legislative consent for external borrowing.
The President stated that the loans may be raised through Eurobonds, syndicated loans, or bridge financing, depending on market conditions. He noted that interest rates would likely align with current yields on Nigeria’s existing international bonds, which range from 6.8% to 9.3%.
On the $500 million international sukuk, Tinubu explained that it would attract new investor groups, deepen Nigeria’s securities market, and fund critical infrastructure.
He added that Nigeria has already raised over N1.39 trillion through domestic sukuk issuances since 2017 for major road and capital projects, and the international sukuk would complement these efforts. Up to 25% of the funds may be used to refinance existing high-cost debt.
The approvals clear the way for the Federal Government to proceed with the financing plans.
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