The National Assembly has approved President Bola Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit.
Both the Senate and House of Representatives approved the loan request on Wednesday after considering the report of the committees on local and foreign debts.
They also approved the president’s request to issue a $500 million debut sovereign sukuk in the international capital market (ICM) to fund infrastructure projects and diversify Nigeria’s financing sources.
President Tinubu had, in a letter earlier this month, asked the lawmakers to approve the borrowing request, which, he said was necessary to give effect to the borrowing provisions in the 2025 Appropriation Act.
He said that the 2025 budget provided for N9.28 trillion in new borrowings to bridge the fiscal deficit, out of which N1.84 trillion (equivalent to $1.229 billion) was earmarked as new external borrowing.
Tinubu also sought lawmakers’ approval to refinance the $1.118 billion Eurobond issued in 2018, which he said will mature on November 21, 2025.
He said the move was necessary to “avoid default” and is in line with international best practices in debt capital markets.
He said the aggregate external capital to be raised comprising $1.229 billion for new borrowing and $1.118 billion for refinancing amounts to $2.347 billion.
