The National Assembly on Wednesday approved President Bola Tinubu’s request to secure the sum of $2.347bn from the international capital market to part-finance the 2025 budget deficit and refinance maturing Eurobonds.

Also granted was President’s request to issue a $500 million debut sovereign Sukuk in the international capital market (ICM) to fund infrastructure projects and diversify Nigeria’s financing sources.

The approval was given after considering the report of both committees on aids, loans and debt management.

In the House of Representatives, the lawmakers adopted a report presented by the House Committee on Aids, Loans, and Debt Management, chaired by Hon. Abubakar Hassan Nalaraba, during plenary presided over by Speaker Tajudeen Abbas.

The green chamber approved the implementation of the new external borrowing of N1,843,669,786,987.16 (equivalent to $1,229,113,000.00) at the budget exchange rate of $1.00/N1,500 as provided as new external borrowing in the 2025 Appropriation Act, to part-finance the budget deficit of N9,276,348,934,935.79.

Tinubu had earlier asked the National Assembly to approve the loan, saying the external borrowing is backed by provisions of sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003, which require legislative approval for new loans and refinancing arrangements.

The President said the funds would be raised through one or a combination of instruments such as Eurobonds, loan syndications, or bridge financing facilities, depending on prevailing market conditions.