Nigeria’s National Assembly Approves $2.85 Billion Borrowing Plan

Nigeria’s pursuit of external funds received a significant boost on Wednesday as the National Assembly approved President Bola Tinubu’s request for a total of $2.85 billion in new external financing and debt refinancing.

Both the Senate and the House of Representatives granted approval for the comprehensive financial package. The decision followed the consideration and adoption of a report by the House Committee on Aids, Loans, and Debt Management on Wednesday, October 29, 2025.

The largest component of the approval is the $2.347 billion to be raised from the international capital market. This amount is structured to address two critical fiscal needs.

First, $1.23 billion is designated to part-finance the country’s ₦9.28 trillion 2025 budget deficit. The remainder, $1.12 billion, is allocated for the crucial task of refinancing a maturing Eurobond that is due in November 2025, a measure necessary to preserve Nigeria’s credit standing and prevent default.

The second major approval covers the issuance of a $500 million debut Sovereign Sukuk in the international capital market. This Islamic-compliant financial instrument is intended to support the development of critical infrastructure projects across the country.

President Tinubu had earlier explained in his communication to the National Assembly that the new borrowing was essential to bridge the fiscal gap and ensure the government meets its debt obligations as they mature.

The Federal Government is authorised to access the $2.35 billion through a combination of instruments, including Eurobond issuance, loan syndications, and bridge financing facilities, depending on prevailing market conditions. The move to issue the international Sukuk is also aimed at diversifying Nigeria’s investor base and deepening the government securities market.