The plan, approved by both the Senate and the House of Representatives on Thursday, is part of the federal government’s fiscal strategy to finance the 2025 budget deficit and refinance maturing Eurobonds.
A breakdown of the borrowing plan shows that $1.229 billion will be used to part-finance the ₦9.27 trillion budget deficit, while $1.118 billion will go toward refinancing the 7.625% Eurobond maturing on November 21, 2025.
Additionally, lawmakers approved the issuance of a debut $500 million sovereign Sukuk on the international capital market to fund key infrastructure projects.
The Senate’s approval followed the presentation of a report by its Committee on Local and Foreign Debts chaired by Senator Aliyu Wamakko, while the House adopted a similar report from its Loans and Debt Committee led by Hassan Nalaraba.
Senator Mohammed Sani Musa, Chair of the Senate Finance Committee, said the move was necessary to ensure adequate funding for the 2025 fiscal year, describing the borrowing as “strategic and responsible.”
Similarly, Senator Tokunbo Abiru, Chairman of the Senate Banking Committee, noted that the borrowing was already embedded in the 2025 Appropriation framework and aligned with the government’s deficit financing strategy.
President Tinubu’s request, first read in October, seeks National Assembly approval to raise funds through Eurobonds, loan syndications, bridge finance facilities, or direct borrowing from international financial institutions.
Lawmakers across party lines emphasized the importance of using the borrowings to finance critical projects that will drive economic growth and job creation.
