Bola Tinubu loan approval gets House backing as lawmakers approve $2.35bn borrowing and $500m sukuk to fund Nigeria’s 2025 budget and infrastructure.
President Bola Hammed Tinubu loan approval has received the green light from the House of Representatives, paving the way for Nigeria to borrow $2.35 billion to fund part of the 2025 budget deficit and boost infrastructure development.
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The approval came on Thursday following the consideration of the report from the Committee on Aids, Loans and Debt Management. Lawmakers also endorsed the President’s plan to issue a $500 million debut sovereign sukuk in the international capital market — a move expected to diversify Nigeria’s financing sources and strengthen foreign reserves.
Under the approved framework, the House sanctioned the implementation of new external borrowing worth ₦1.84 trillion (approximately $1.23 billion) at an exchange rate of ₦1,500 to the dollar, as outlined in the 2025 Appropriation Act. The funds will part-finance the budget deficit of ₦9.27 trillion.
Earlier this month, President Tinubu had sought parliamentary consent in line with sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandates legislative approval for new loans and refinancing arrangements.
He explained that the funds would be sourced through a mix of eurobonds, syndicated loans, or bridge financing, depending on market conditions. The government expects eurobond pricing to align with yields on Nigeria’s existing bonds, which range between 6.8 and 9.3 per cent.
On the proposed $500 million sovereign sukuk, Tinubu said the instrument would help diversify the investor base and deepen Nigeria’s government securities market.
The proceeds, he added, would finance critical infrastructure such as roads and power projects, with up to 25 per cent potentially used to refinance high-cost existing debt.
Highlighting Nigeria’s track record, the President noted that over ₦1.39 trillion had already been raised through domestic sukuk issuances between 2017 and 2025, supporting key national infrastructure.
The planned international sukuk, he said, would complement these domestic efforts and open new channels for sustainable funding.
Tinubu described the initiative as a powerful fiscal step aimed at stabilising the naira, bolstering foreign reserves, and funding vital projects that can stimulate long-term economic growth.
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The House’s approval marks a major stride toward implementing the external financing component of the 2025 Appropriation Act, reinforcing the administration’s commitment to responsible borrowing and economic recovery.
