The House of Representatives has approved President Bola Tinubu’s request to obtain $2.35 billion in external loans to finance part of Nigeria’s 2025 budget deficit.
The Lawmakers also endorsed the issuance of a $500 million sovereign sukuk bond in the international market.
The bond aims to boost infrastructure development and diversify Nigeria’s funding sources.
The approvals came after the House adopted a report by the Committee on Aids, Loans and Debt Management during plenary on Wednesday.
According to the report, the new borrowing aligns with the 2025 Appropriation Act, which permits the federal government to implement N1.84 trillion in new external loans.
The plan will use a budget exchange rate of N1,500 to $1 to finance part of the N9.28 trillion deficit projected in the national budget.
President Tinubu had earlier written to the National Assembly seeking approval for the loans.
His request cited Sections 21(1) and 27(1) of the Debt Management Office Act, which mandate legislative consent for any form of external borrowing.
The government said the fresh loans are crucial to bridge fiscal gaps, stabilize the economy, and fund priority capital projects in 2025.
The $500 million sukuk, which follows previous successful issuances, is expected to attract foreign investors and provide non-interest financing for key road and infrastructure projects.
Nigeria’s debt management strategy, officials say, aims to maintain sustainability while expanding access to concessional funding.
The National Assembly’s approval marks another step in implementing the Tinubu administration’s broader medium-term debt and financing framework.