The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion from external lenders to finance part of the deficit in the 2025 budget.
In a session on Wednesday, the Green Chamber also granted the president’s separate request to issue a $500 million sovereign sukuk, a type of Islamic financial certificate, in the international capital market.
This move marks Nigeria’s debut sovereign sukuk issuance, which the government has said is aimed at funding critical infrastructure projects and diversifying the country’s sources of financing.
The approvals were given after the House considered a report from its Committee on Aids, Loans and Debt Management, which reviewed the details of the president’s requests.
The $2.35 billion loan is intended to help bridge the funding gap in the 2025 appropriation act, supporting the government’s spending plans for the fiscal year.
The simultaneous approval of the sukuk issuance reflects a strategy to tap into new pools of international investors and align the nation’s borrowing with global financial innovations.
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