Reported by: Oahimire Omone Precious | Edited by: Henry Owen | Stone Reporter News
The House of Representatives has officially approved President Bola Ahmed Tinubu’s request to secure a $2.35 billion foreign loan and issue a $500 million sovereign sukuk to bridge part of Nigeria’s 2025 budget deficit and strengthen national development projects.
The approval followed a presentation by the House Committee on Aids, Loans, and Debt Management, which reviewed the borrowing plan and endorsed it as necessary for fiscal stability and continuity of key infrastructure programmes.
According to the federal government’s financial plan, the external borrowing will help fill a significant funding gap in the upcoming fiscal year and also refinance existing debts that are due for repayment in 2025. This includes a maturing Eurobond, which will be rolled over to ease repayment pressure and sustain the country’s credit standing.
The issuance of the $500 million sovereign sukuk marks a strategic expansion of Nigeria’s financing options. The sukuk instrument, designed under Islamic finance principles, will attract non-interest investors while promoting accountability and infrastructure development. Part of the sukuk proceeds will go toward road construction, power projects, and other capital-intensive initiatives aimed at stimulating economic growth.
In presenting the request earlier, President Tinubu had explained that the decision to borrow was not taken lightly but formed part of a broader economic framework to stabilize revenue shortfalls, promote investment, and ensure the timely execution of national priorities under the 2025 budget.
Lawmakers emphasized the need for transparency and prudent management of the borrowed funds, urging the executive arm to ensure the loans are strictly applied to productive sectors that can generate long-term value for citizens and strengthen Nigeria’s fiscal sustainability.
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