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 reached this decision on Wednesday, following a review of reports from the committees on local and foreign debts.
Additionally, the legislature sanctioned the president’s request to issue a $500 million debut sovereign sukuk in the international capital market (ICM). This move aims to fund infrastructure projects and diversify Nigeria’s financing sources.
In his letter earlier this month, President Tinubu emphasized the necessity of the borrowing to implement the provisions in the 2025 Appropriation Act. The budget outlines N9.28 trillion in new borrowings to address the fiscal deficit, with N1.84 trillion (approximately $1.229 billion) designated for new external borrowing.
The president also sought approval to refinance a $1.118 billion Eurobond issued in 2018, which is set to mature on November 21, 2025. He indicated that this refinancing is crucial to “avoid default” and aligns with international best practices in debt capital markets. The total external capital to be raised, combining $1.229 billion for new borrowing and $1.118 billion for refinancing, amounts to $2.347 billion.
