The National Assembly has approved President Bola Tinubu’s request to implement the new external borrowing plan captured in the 2025 Appropriation Act.
Lawmakers Approve $2.3bn Borrowing to Fund Budget Deficit
Under the plan, Nigeria will access up to $2.347 billion from external sources. Part of the funds will be used to refinance maturing Eurobonds, while others will support the 2025 budget implementation.
Both the Senate and the House of Representatives also approved the issuance of a debut $500 million sovereign Sukuk in the international capital market. The maiden external Sukuk aims to fund key infrastructure projects across the country.
The approvals followed the adoption of reports from relevant committees in both chambers. The Senate based its decision on the report presented by Senator Aliyu Wamakko, Chairman of the Committee on Local and Foreign Debts, while the House adopted the report by Hassan Nalaraba, Chairman of the Committee on Loans and Debt.
Lawmakers Justify Approval
The request, first read on October 8, 2025, sought new external borrowing to finance part of the N9.27 trillion deficit in the 2025 budget.
Senator Mohammed Sani Musa, Chairman of the Senate Committee on Finance, urged lawmakers to support the move, noting that it was necessary to provide funding for the 2025 fiscal year. He said, “It is needful that we give approval to this request so that the 2025 appropriation will be given the necessary funding.”
Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, described the borrowing plan as a compliance measure, saying, “This is more of a compliance issue because the 2025 Appropriation Act has already captured it as part of the deficit financing.”
Senator Adams Oshiomhole also supported the request, stressing that borrowing was acceptable if used to address unemployment and decaying infrastructure.
The House approved the implementation of new external borrowing of ₦1.84 trillion (equivalent to $1.229 billion at the budget exchange rate of ₦1,500 per dollar). The funds will part-finance the 2025 budget deficit and refinance a $1.118 billion Eurobond maturing in November 2025.
The Federal Government may raise the funds through Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions.
Additionally, lawmakers approved the issuance of a stand-alone debut sovereign Sukuk of up to $500 million, with or without credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
Tinubu’s Letter to the National Assembly
In a letter dated September 22, 2025, President Tinubu requested legislative approval under sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003. He explained that the plan is to secure $2.347 billion through Eurobonds, bridge finance, loan syndication, or other international credit options.
The President also stated that Nigeria has successfully raised ₦1.39 trillion through domestic Sukuk issuances since 2017, used mainly for road infrastructure projects. The new international Sukuk, he added, would help bridge funding gaps and diversify the nation’s investor base.
A 9am News report noted that the Tinubu administration aims to balance fiscal sustainability with infrastructure expansion through responsible borrowing and refinancing of maturing obligations.
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