₦airaland Forum

The House of Representatives has approved President Bola Tinubu’s request to borrow $2.35 billion to help finance part of the 2025 budget deficit.

In addition, the green chamber on Wednesday endorsed the President’s proposal to issue a $500 million debut sovereign sukuk in the international capital market (ICM) to support key infrastructure projects and diversify Nigeria’s financing sources.

The approvals followed the consideration and adoption of the report of the House Committee on Aids, Loans, and Debt Management, which reviewed the borrowing plan and recommended its implementation.

According to the report, the new external borrowing of N1,843,669,786,987.16 (equivalent to $1.229 billion) at the budget exchange rate of N1,500 to $1, as provided for in the 2025 Appropriation Act, will be used to part-finance the N9.28 trillion budget deficit.

Back story

Earlier this month, Nairametrics had reported that Tinubu requested the House of Representatives to approve the Federal Government’s plan to raise $2.3 billion in external capital for the 2025 fiscal year.

In a letter addressed to the House and read on the floor by Speaker Hon. Abbas Tajudeen, President Tinubu explained that the funds would be raised through a combination of instruments, including the issuance of Eurobonds, bridge financing facilities from book runners, loan syndications, and direct borrowing from international financial institutions.

“The Federal Government has recorded considerable success in the issuance of Sukuk in the domestic capital market for the development of critical infrastructural projects across the country,” the president stated.

What you should know

In July, the Senate approved the 2025-2026 external borrowing plan of $21.5 billion presented by President Tinubu for consideration.

The Senate also approved the issuance of a Federal Government Bond of N757 billion for the payment of accrued rights pension arrears as of December 2023 for the Contributory Pension Scheme (CPS).

Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year increase of N27.72 trillion or 22.8% when compared to the N121.67 trillion recorded in the corresponding period of 2024.

Earlier, Nairametrics reported that Nigeria is in discussions with China’s Export-Import Bank for a $2 billion loan to finance a new “super grid” aimed at easing the country’s chronic power shortages and boosting industrial growth.

The Debt Management Office (DMO) successfully raised N1.39 trillion through the issuance of Sukuk bonds in the domestic capital market, which have been channelled toward the construction and rehabilitation of major roads and bridges nationwide.

owobokiri:
At this point, the question to Akpabio should be; is there anything that Tinubu demands from you that you and your rubber stamp Senate won't approve without batting an eyelid? If he asks for permission to hand Nigeria over to Al-Shabab, are you not going to approve that too?

This is astonishing! Totally emberassing. Not even in the discredited era of the fat Ahmed Lawan did we witness this brand of legislative debauchery. It seems like Akpabio is the most crooked political player to come out of the South South in recent history..

owobokiri:
At this point, the question to Akpabio should be; is there anything that Tinubu demands from you that you and your rubber stamp Senate won't approve without batting an eyelid? If he asks for permission to hand Nigeria over to Al-Shabab, are you not going to approve that too?

This is astonishing! Totally emberassing. Not even in the discredited era of the fat Ahmed Lawan did we witness this brand of legislative debauchery. It seems like Akpabio is the most crooked political player to come out of the South South in recent history..

BlackViper:
https://nairametrics.com/2025/10/29/house-of-representatives-approves-tinubus-2-35-billion-loan-request-for-2025-budget/

AqualinaXYZ:
These are the issues



When we complain they call us names



Tinubu came with I already have money I don’t need Nigeria money



An urban bandit like El Rufai called him



I no blame am shaa

Putinofrussia:
All the loans are under the $21.5 billion MTEF that was approved by NASS earlier this year
It is going to be taken until the loans reach $21.5 billion by 2026.The loans belong to FG,States and LG.
States and LG loans are channelled through the FG.Lenders do loan them directly but through the FG that they can hold responsible.
The approved package is more complex than a single $21.5 billion loan and includes several components:
External Loans: $21.19 billion in direct foreign loans, €4 billion, and ¥15 billion. The loans are expected to be disbursed over a six-year period from international lenders, including the World Bank, African Development Bank, and China Development Bank.

Domestic Instruments: Up to $2 billion to be raised in the domestic market using a foreign-currency-denominated instrument.
Domestic Bonds: Approximately ₦757 billion in government bonds to settle outstanding pension liabilities under the Contributory Pension Scheme.
Grant: A $65 million grant.
Allocation of funds
The loan is earmarked for projects across various critical sectors in Nigeria:
Infrastructure: Including the Lagos-Calabar Coastal Highway and the reconstruction of the Eastern rail line from Port Harcourt to Maiduguri.

Human Capital Development: Allocations for health, education, and social safety net programs.
Security, Agriculture, Power, and Housing.
Pension Obligations: A portion is designated for clearing pension arrears.

Itiskdg121:
Unfortunately, there is nothing we could do about it as citizens.

Inspirer1:
I think the challenge is about how those funds are JUDICIOUSLY used.

Kinoike:
After paying heavily because of subsidy removals. Why are they still borrowing? I thought Tinubu said he is building for future generations and unborn children. What is this mess please? People are suffering and what he does is to be borrowing money in dollars. This is not fair!

santopelele:
We go pay tax tire next year, on your scrutum we stand gidigbam