Reps Approve Tinubu’s $2.35bn Loan And $500m Sukuk Proposal

The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion and issue a $500 million international sukuk to finance infrastructure projects and support the 2025 budget.

The approval followed the presentation of a report by the House Committee on Aids, Loans, and Debt Management, which backed the President’s plan to raise funds from the international capital market in accordance with the 2025 Appropriation Act.

According to the borrowing plan, $1.229 billion will be obtained to reduce the ₦9.27 trillion budget deficit, while another $1.118 billion will be used to refinance a Eurobond due in November 2025. The total amount stands at $2.347 billion.

Tinubu stated that the funds would be raised through Eurobonds, loan syndication, bridge financing, or direct borrowing from international financial institutions, depending on global market conditions. He said the Finance Ministry and the Debt Management Office would collaborate with financial advisers to secure the best possible terms.

The House also approved the plan to issue Nigeria’s first-ever international sovereign sukuk worth $500 million. The sukuk is expected to fund major infrastructure projects and attract Islamic investors.

The President explained that the sukuk, similar to domestic ones which have generated over ₦1.39 trillion since 2017, will help diversify Nigeria’s funding sources and strengthen the local bond market.

However, the approval comes amid rising concern among Nigerians about the country’s increasing debt profile. Many citizens and economic experts continue to question the long-term sustainability of the growing borrowing trend despite government assurances of fiscal responsibility.