ABUJA, Nigeria (FN) — Nigeria’s House of Representatives has approved President Bola Ahmed Tinubu’s request for a new external borrowing plan totaling 1.84 trillion dollars (about 1.23 billion dollars), aimed at financing the country’s growing budget deficit under the 2025 Appropriation Act.
The approval came Wednesday after lawmakers adopted a report from the House Committee on Aids, Loans and Debt Management, chaired by Rep. Abubakar Hassan Nalaraba. The committee recommended the loan as a partial solution to the N9.27 trillion deficit outlined in the federal budget.
In addition to the new borrowing, the House authorized the refinancing of a maturing Eurobond valued at 1.12 billion dollars, due in November 2025. The move is intended to ease repayment pressure and stabilize Nigeria’s external debt profile.
Lawmakers also gave the green light for the federal government to access 2.35 billion dollars through various international financing mechanisms. These include Eurobond issuance, syndicated loans, bridge financing, and other instruments from global financial institutions.
To diversify Nigeria’s debt portfolio and attract Islamic-compliant investors, the House approved the issuance of a 500 million dollars debut stand-alone Sovereign Sukuk in the international capital market. The Sukuk may be issued with or without credit enhancement, depending on market conditions.
Finance experts say the borrowing plan reflects Nigeria’s urgent need to fund infrastructure and social programs while managing rising debt obligations. “It’s a balancing act between liquidity and sustainability,” said Dr. Amina Yusuf, an economist at the University of Lagos.
The resolution aligns with President Tinubu’s broader fiscal strategy to strengthen foreign reserves, stabilize the naira, and boost investor confidence. His administration has prioritized infrastructure development and economic reforms amid persistent inflation and currency volatility.
Critics, however, warn that continued reliance on external borrowing could deepen Nigeria’s debt burden. “We need to be cautious,” said opposition lawmaker Rep. Chijioke Umeh. “Borrowing must be matched with clear repayment plans and measurable outcomes.”
Nigeria’s public debt stood at N97.3 trillion (64.3 billion dollars) as of mid-2025, according to the Debt Management Office. The government has defended its borrowing strategy as necessary to bridge funding gaps and stimulate growth.
The approved measures will now be forwarded to the Senate for concurrence before implementation begins.
