Reps Approve Tinubu’s $2.35bn Loan Request, Endorse $500m Global Sukuk to Fund Infrastructure
Story: written by Joseph October 30,2025
The House of Representatives has given its approval to President Bola Ahmed Tinubu’s proposal to secure $2.35 billion in external loans to partially finance Nigeria’s 2025 budget deficit.
At Wednesday’s plenary session, the lawmakers also endorsed the President’s plan to issue a $500 million sovereign sukuk on the international capital market to fund key infrastructure projects and broaden the nation’s financing sources.
The approvals came after the House adopted the report presented by the Committee on Aids, Loans, and Debt Management, which reviewed the borrowing requests.
According to the resolution, the House authorized the implementation of a new external borrowing of ₦1.84 trillion (about $1.23 billion) at a budget exchange rate of ₦1,500 per dollar, as stipulated in the 2025 Appropriation Act, to cover part of the ₦9.28 trillion federal deficit.
Earlier in the month, President Tinubu formally wrote to the National Assembly, seeking legislative approval for the borrowing in accordance with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which mandates parliamentary consent for external loans.
In his letter, the President explained that the funds would be raised through a mix of instruments such as Eurobonds, loan syndications, or bridge financing, depending on market conditions. He noted that the expected Eurobond pricing would reflect yields on Nigeria’s existing international bonds, currently ranging between 6.8% and 9.3%, depending on their maturity periods.
Speaking on the proposed $500 million sukuk, Tinubu emphasized that the debut international issuance would help attract new investors, enhance Nigeria’s profile in global capital markets, and strengthen the domestic FGN securities market.
He further disclosed that proceeds from the sukuk would be used to develop critical infrastructure projects nationwide, adding that Nigeria had previously raised over ₦1.39 trillion through domestic sukuk issuances between 2017 and 2025, which funded several major road and infrastructure initiatives.
“It is vital to expand the federal government’s funding options and deepen the market for government securities,” the President wrote.
Tinubu also revealed that up to 25% of the sukuk proceeds may be used to refinance high-interest existing debts, while the remaining funds would be channeled into strategic national development projects.
