House of Representatives Approves $2.35 Billion External Loan for 2025 Budget Financing
House of Representatives has granted President Bola Tinubu approval to secure a total of $2.347 billion from the international capital market. This funding aims to address the 2025 budget deficit and refinance maturing Eurobonds, highlighting the administration’s ongoing efforts to stimulate Nigeria’s economic growth.
The approval was reached during a plenary session presided over by Speaker Tajudeen Abbas, following the presentation of a report by the House Committee on Aids, Loans, and Debt Management, led by Hon. Abubakar Hassan Nalaraba. The committee’s report detailed that the new borrowing plan includes $1.23 billion to part-finance the 2025 budget and $1.12 billion dedicated to refinancing Nigeria’s maturing Eurobonds set to expire in November 2025.
Since taking office in May 2023, President Tinubu’s administration has successfully secured approximately $7.2 billion in external loans from the World Bank, which are directed towards vital economic reforms and development projects.
Additionally, the government anticipates a $1 billion facility from the African Development Bank to be disbursed between 2024 and 2025.
As part of the broader financing strategy, the House had also approved a borrowing plan in October 2025 that includes plans for Nigeria’s inaugural Sovereign Sukuk bond issuance of up to $500 million in the international market. This bond will be issued with or without a credit guarantee, broadening the country’s financial options.
During the session, Deputy Speaker Benjamin Kalu emphasized the importance of the committee’s recommendations, which were met with affirmative support from members. The House authorized the Federal Government to implement the external borrowing measures as stipulated in the 2025 Appropriation Act, amounting to approximately ₦1.84 trillion at a budget exchange rate of ₦1,500 to $1.
President Tinubu underscored the necessity of this borrowing plan as a means to bridge the gap between projected revenue and expenditures for the upcoming fiscal year, ensuring the government can meet its debt obligations timely.
This latest approval reflects the administration’s commitment to managing Nigeria’s fiscal responsibilities while fostering economic resilience.
