Budget Deficit: Reps Approve Tinubu’s $2.3Bn External Borrowing Request

By Alkassim Bala Tsakuwa,Abuja

The House of Representatives has approved the request by President Bola Tinubu’s to borrow $2.35 billion from external sources to finance Nigeria’s 2025 budget deficit and meet other fiscal challenges.

The approval followed the adoption of a report by the House Committee on Aids, Loans and Debts Management presented by Hon. Abubakar Hassan Nalaraba at the Plenary on Wednesday.

The report reads, “That the House do consider the Report of the Committee on Aids, Loans and Debts Management on the Request to Implement New External Borrowing in the 2025 Appropriations Act, Refinance Maturing Eurobonds, and issue a Debut Sovereign Sukuk in the International Capital Market and approve recommendations therein” (Laid: 28/10/2025)”.

It could be recalled that, the President had earlier written to the House seeking their approval to raise the funds through combination of loan instruments like Eurobonds, SUKUK and others.

According to the President, the request was in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003.

The House approved the borrowing plan after consideration by the House Committee on Supply chaired by the Speaker, Abbas Tajudeen in line with the recommendations contained in the report which include among others.

“Approve the Implementation of the New External Borrowing of N1,843,669,786,987.16 (equivalent of USD 1,229,113,000.00 at the Budget Exchange rate of USD1.00/N1,500) provided as New External Borrowing in the 2025 Appropriation Act, to part-finance the Budget Deficit of N9,276,348,934,935.79.

“Refinance the USD1,118,352,000.00 Eurobonds (7.625% USD1.118BN NOV 2025) maturing on November 21, 2025.

“Access aggregate external capital of USD2,347,465,000.00 (USD1.229BN and USD 1.118BN), through any of the following option(s) in the International Capital Market (ICM): Issuance of Eurobonds, Loan Syndications, Bridge Finance Facility from Bookrunners and Direct Borrowing from international Financial Institutions.

“Issue a stand-alone debut Sovereign Sukuk of up to USD500M in the ICM with or without credit enhancement (Guarantee)”.

After the consideration, the House reverted to Plenary and subjected the approval to a voice vote and it scaled through.