The National Assembly has granted President Bola Tinubu approval to borrow $2.35 billion to finance part of the 2025 budget deficit.
Both the Senate and House of Representatives granted the approval on Wednesday following the consideration of the report of the committees on local and foreign debts.
The National Assembly also granted the president approval to issue a $500 million debut sovereign sukuk in the international capital market (ICM) to fund infrastructure projects and diversify Nigeria’s financing sources.
President Tinubu, in a letter earlier this month, urged the lawmakers to approve the borrowing, which he said was necessary to give effect to the borrowing provisions in the 2025 Appropriation Act.
Tinubu said the 2025 budget provided for N9.28 trillion in new borrowings to close the fiscal gap, out of which N1.84 trillion (equivalent to $1.229 billion) was earmarked as new external borrowing.
The president also sought lawmakers’ approval to refinance the $1.118 billion Eurobond issued in 2018, which he said will mature on November 21, 2025.
He said the move was necessary to “avoid default” and is in line with international best practices in debt capital markets., adding that the aggregate external capital to be raised comprising $1.229 billion for new borrowing and $1.118 billion for refinancing amounts to $2.347 billion.
