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.

Uba Sani Speaks Out: “I Have Not Collected A Single Loan In Two Years” Kaduna State Governor, Senator Uba Sani, has declared that he has not taken a single loan since assuming office two years ago. The statement comes amid growing public scrutiny over rising state debts across Nigeria. Speaking during a recent media briefing, Governor Sani emphasized his administration’s commitment to fiscal discipline and sustainable governance. According to him, despite financial challenges, Kaduna State has managed its resources prudently without resorting to external borrowing. “We’ve focused on blocking leakages, increasing internally generated revenue, and investing wisely. Our development projects are funded through transparency and accountability, not loans,” he said. The governor’s remark has sparked mixed reactions, with some applauding his fiscal strategy while others question whether the state can meet its infrastructure and social development goals without borrowed funds. #UbaSani #KadunaState #NoLoans #FiscalDiscipline #GoodGovernance

President Tinubu’s Borrowing Summary (As of May 2025) External Borrowing 1. New Loan Request (May 2025) President Tinubu requested approval for: • $21.5 billion, • €2.2 billion, • ¥15 billion for the 2025–2026 borrowing plan. Estimated Naira value using approximate exchange rates: • $1 ≈ ₦1,600 • €1 ≈ ₦1,800 • ¥1 ≈ ₦11 Converted values: • $21.5 billion × ₦1,600 = ₦34.4 trillion • €2.2 billion × ₦1,800 = ₦3.96 trillion • ¥15 billion × ₦11 = ₦0.165 trillion Total (proposed): ≈ ₦38.525 trillion 🔹 Note: This is a loan request. Approval and disbursement are pending as of May 2025. ⸻ 2. $800 Million World Bank Loan (Approved July 2023) • Purpose: To cushion fuel subsidy removal. • ₦1.28 trillion (at ₦1,600/$) 3. $3 Billion AFREXIM Loan (August 2023) • Secured by NNPC against future oil revenues. • ₦4.8 trillion 4. $7.8 Billion Loan Request (November 2023) • For infrastructure, health, education, and security under the 2022–2024 plan. • ₦12.48 trillion 5. $6.45 Billion World Bank Loans (Reported April 2025) • Possibly overlapping with the $800M and $7.8B above. • Estimated value: ₦10.32 trillion 🔹 To avoid double-counting, this amount is considered part of the previously listed loans unless new information shows otherwise. ⸻ Domestic Borrowing 1. ₦20.1 Trillion in Bonds (June 2023–May 2024) • Raised from domestic investors within the first year. • 117% increase over the previous year. 2. ₦758 Billion Pension Bond Request (May 2025) • To clear pension liabilities under the Contributory Pension Scheme. 3. $2 Billion FX-Denominated Domestic Bond (Requested May 2025) • For issuance in the local market. • ₦3.2 trillion ⸻ Ways and Means (CBN Loans) 1. ₦7.3 Trillion Securitized Loan (December 2023) • Added to the ₦22.7 trillion inherited from the Buhari administration. • Tinubu’s share: ₦7.3 trillion ⸻ Total Estimated Borrowing (Confirmed and Non-Overlapping) Category Amount (₦ Trillion) External Loans ₦18.56 trillion Domestic Loans ₦24.06 trillion Ways & Means ₦7.3 trillion Total ₦49.92 trillion 🔹 Excludes the new ₦38.53 trillion loan request to avoid double-counting. ⸻ If New ₦38.53 Trillion Loan is Approved If the May 2025 request is added: • ₦49.92 trillion + ₦38.53 trillion = ₦88.45 trillion ⸻ Potential Borrowing with Additional ₦45 Trillion (Hypothetical) If an additional ₦45 trillion is requested/approved in the future: • ₦49.92 trillion + ₦45 trillion = ₦94.92 trillion 🧮 President Tinubu could borrow up to ₦94.9 trillion within his first two years in office, depending on approvals and disbursements.#Tinubu #president