The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to help finance Nigeria’s 2025 budget deficit. Lawmakers also gave the green light for the issuance of a $500 million debut sovereign sukuk in the international capital market to fund infrastructure projects and diversify the country’s financing options.

The approval followed the consideration of a report by the House Committee on Aids, Loans, and Debt Management. Under the new arrangement, the House endorsed the implementation of external borrowing amounting to N1.84 trillion (equivalent to $1.23 billion) at a budget exchange rate of ₦1,500 to the dollar. This forms part of the financing plan to cover the 2025 budget deficit estimated at N9.28 trillion.

Earlier this month, President Tinubu wrote to the National Assembly seeking legislative approval for the new loans, citing sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003. The president explained that the funds would be raised through various instruments, including eurobonds, syndicated loans, or bridge financing, depending on prevailing market conditions.

Tinubu noted that the pricing of the eurobonds is expected to align with existing yields on Nigeria’s international bonds, which currently range between 6.8 and 9.3 percent, depending on maturity.

On the proposed $500 million sovereign sukuk, the president said the initiative would expand Nigeria’s investor base, deepen the domestic securities market, and support critical infrastructure development nationwide. Between 2017 and 2025, the federal government has raised over N1.39 trillion through domestic sukuk issuances to fund major road and infrastructure projects. The planned international sukuk, he added, would complement those domestic efforts.

Tinubu further stated that up to 25 percent of the sukuk proceeds could be used to refinance high-cost existing debt, while the remaining funds would go toward infrastructure financing. He also proposed that the issuance could include a credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, a member of the Islamic Development Bank Group, to enhance investor confidence.