THE House of Representatives on Wednesday approved President Bola Tinubu’s request to borrow $2.35 billion to finance part of Nigeria’s 2025 budget deficit.
At its plenary, the lawmakers also authorised the issuance of a $500 million debut sovereign sukuk in the international capital market to support infrastructure projects and diversify the country’s funding sources.
The approvals followed the consideration and adoption of a report by the House Committee on Aids, Loans and Debt Management during plenary in Abuja.
The new borrowing plan includes ₦1.84 trillion (about $1.23 billion) at the approved 2025 budget exchange rate of ₦1,500 per dollar, to partly cover the government’s ₦9.27 trillion budget shortfall.
Tinubu had, in a letter to the National Assembly earlier on October 7, requested approval to raise $2.3 billion from Eurobonds, syndicated loans, bridge financing, and credits from international financial institutions.
The president also sought approval to issue a $500 million sovereign sukuk, with or without credit guarantees from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), an arm of the Islamic Development Bank (IsDB).
In his letter, Tinubu explained that $1.2 billion of the planned borrowing would fund the implementation of the 2025 Appropriation Act, while $1.1 billion would refinance Nigeria’s maturing Eurobonds.
Tinubu noted that Nigeria had made progress in raising funds domestically through the Sukuk bond programme, which generated over ₦1.39 trillion between 2017 and May 2025 for key road projects, adding that, “domestic borrowing alone could not close the existing infrastructure and financing gaps, hence the need to turn to external sources.”
Tinubu also said 25 per cent of the sukuk proceeds would be used to repay high-interest debts, while the remainder would fund pre-selected infrastructure projects nationwide.
The request came a day after the Senate approved $21 billion borrowing framework for the same fiscal period.
The ICIR reports that this development adds to a series of foreign loan requests made since Tinubu assumed office in 2023. Earlier in July 2025, the Senate had approved a $21 billion borrowing plan to finance key sectors, including health, education, agriculture, and housing. The same framework also covered a €4 billion facility, ¥15 billion from Japan, a $65 million grant, and $2 billion in local dollar-denominated loans.
Also in July, The ICIR reported that Tinubu formally requested approval from the National Assembly to borrow $347 million under the Federal Government’s 2025–2026 external borrowing plan.
The president cited urgent infrastructure and telecommunications needs for the decision.
The country’s public debt has, however, continued to rise. Data from the Debt Management Office (DMO) show that Nigeria’s total debt stock exceeded $108 billion by mid-2025, reflecting a growing dependence on loans to sustain fiscal operations amid revenue shortfalls.
Earlier in May, former Vice President Atiku Abubakar said Tinubu’s addiction to loans would mortgage Nigeria’s future.
He expressed his concern in a statement shared on his X handle on Thursday, May 29.
According to the former vice president, the announcement by the Tinubu-led All Progressives Congress (APC) government to pursue fresh external and domestic loans was a reckless and dangerous move that threatened the future of Nigeria and generations yet unborn.
“Despite national outrage, this administration is pushing ahead with plans to borrow $21.54 billion, €2.19 billion, and ¥15 billion — an equivalent of over $24 billion, which is more than 60 per cent of Nigeria’s total foreign exchange reserves.
“This borrowing spree will raise our total public debt from ₦144.7 trillion to a crushing ₦183 trillion,” he stated.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M