The House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow $2.35 billion to finance part of Nigeria’s 2025 budget deficit.
The approval, granted during Wednesday’s plenary, followed the consideration and adoption of the report of the House Committee on Aids, Loans, and Debt Management.
In addition to the borrowing request, the lawmakers also gave the green light for the issuance of a $500 million debut sovereign sukuk in the international capital market (ICM). The sukuk, a Sharia-compliant financial instrument, will be used to fund critical infrastructure projects across the country while broadening Nigeria’s access to alternative financing sources.
According to the committee’s report, the $2.35 billion loan is part of the federal government’s plan to bridge the funding gap in the 2025 appropriation bill and sustain key development programmes in sectors such as transport, power, agriculture, health, and education.
Lawmakers emphasized that the decision aligns with the government’s medium-term debt management strategy, which seeks to optimize Nigeria’s debt portfolio by combining both concessional and market-based financing options.
The approval comes amid growing concerns about Nigeria’s rising debt profile, which the Debt Management Office (DMO) recently put at over ₦121 trillion as of mid-2025. The federal government, however, maintains that the new loans are necessary to stimulate growth, attract investment, and deliver essential infrastructure to Nigerians.
