The House of Representatives has greenlit President Bola Tinubu’s request to borrow $2.35 billion in external funds to part-finance the 2025 budget deficit, while also approving a landmark $500 million sovereign sukuk issuance in the international capital market to boost infrastructure and diversify funding sources.
The approvals came on Wednesday after the lower chamber adopted the report of its Committee on Aids, Loans and Debt Management.
Lawmakers authorized N1.84 trillion (equivalent to $1.23 billion at the budget rate of N1,500/$1) as new external borrowing under the 2025 Appropriation Act, targeting the N9.28 trillion deficit.
An additional $1.12 billion in bridge financing or eurobonds brings the total external package to $2.35 billion.
In his earlier letter to the National Assembly, President Tinubu invoked Sections 21(1) and 27(1) of the Debt Management Office Act, stressing the need for legislative backing.
Funds will be raised via eurobonds, syndicated loans, or short-term facilities, with expected yields mirroring Nigeria’s existing bonds at 6.8%–9.3%, depending on tenor.
The $500 million debut sukuk, potentially backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) marks Nigeria’s first sovereign Islamic bond in global markets.
Up to 25% of proceeds may refinance costly domestic debt, with the rest earmarked for critical infrastructure.
Tinubu noted that domestic sukuk issuances since 2017 have already mobilized over N1.39 trillion for roads and bridges, adding that the international sukuk will “open new funding channels and deepen the FGN securities market.”
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