The House of Representatives has approved President Bola Ahmed Tinubu’s request to implement the new external borrowing plan contained in the 2025 Appropriation Act, aimed at refinancing Nigeria’s maturing Eurobonds and issuing the country’s first-ever Sovereign Sukuk in the International Capital Market (ICM).
The approval followed the adoption of the report of the House Committee on Loans and Debt Management, presented at plenary on Wednesday by the committee chairman, Hon. Hassan Nalaraba.
However, the session was not without drama. The Deputy House Leader, Hon. Abdullahi Ibrahim Halims, who initially moved for the consideration of the report, later suggested that it be stepped down for further consultation. His motion drew the ire of Speaker Tajudeen Abbas, who queried why the deputy leader would call for the report’s suspension despite moving for its presentation.
After deliberations, the House approved the implementation of a new external borrowing of ₦1.84 trillion (equivalent to $1.229 billion at the budget exchange rate of ₦1,500/$1) to part-finance the ₦9.27 trillion budget deficit in the 2025 Appropriation Act.
The lawmakers also granted approval for the refinancing of $1.118 billion Eurobonds (7.625% USD1.118BN NOV 2025) maturing on November 21, 2025, and authorized access to an aggregate external capital of $2.347 billion, combining both the new borrowing and the Eurobond refinancing.
The external financing is expected to be sourced through a mix of Eurobond issuance, loan syndications, bridge finance facilities from bookrunners, and direct borrowing from international financial institutions.
Additionally, the House approved the issuance of a debut Sovereign Sukuk of up to $500 million in the international capital market, with or without credit enhancement (guarantee).
President Tinubu had earlier transmitted a letter dated September 22, 2025, to the National Assembly, requesting legislative approval to implement the new borrowing plan in line with Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003.
In the letter, which was read during plenary on October 7, 2025, the President explained that the borrowing was necessary to support implementation of the 2025 budget and ensure the refinancing of Nigeria’s maturing external debt obligations in a sustainable manner.
He further emphasized that the debut Sovereign Sukuk issuance would diversify Nigeria’s sources of external financing and attract investors seeking Sharia-compliant instruments.
The move is part of the administration’s broader fiscal strategy to manage debt service obligations, deepen the country’s presence in global debt markets, and strengthen investor confidence amid ongoing economic reforms.
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