NASS approves Tinubu’s $2.35bn foreign loan

The National Assembly has approved President Bola Tinubu’s request to borrow a total of $2.347 billion from the international capital market to help finance the 2025 budget deficit and refinance maturing Eurobonds.

Lawmakers also endorsed the President’s proposal to issue a $500 million debut sovereign sukuk in the international capital market (ICM) to fund infrastructure projects and broaden the nation’s funding sources.

The approval followed the consideration of reports from the Senate and House committees on Aids, Loans, and Debt Management.

In the House of Representatives, the report was presented by the committee’s chairman, Hon. Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.

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The lower chamber approved the implementation of the new external borrowing of N1.84 trillion (about $1.23 billion) at a budget exchange rate of $1/N1,500 as provided in the 2025 Appropriation Act to partly finance the budget deficit of N9.27 trillion.

President Tinubu had earlier sought parliamentary consent for the loans, citing sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new borrowings and refinancing arrangements.

According to the President, the funds will be raised through one or a mix of instruments, including Eurobonds, loan syndications, or bridge financing facilities, depending on market conditions.