Reps approve Tinubu’s $500m sukuk and $1.2bn external loan to fund infrastructure and reduce budget deficit.
The House of Representatives on Wednesday approved President Bola Tinubu’s request to raise $500 million through a debut sovereign sukuk in the international capital market to fund infrastructure and diversify Nigeria’s financing sources.
The green chamber also endorsed a new external borrowing of N1.84 trillion ($1.23 billion) to part-finance the N9.27 trillion budget deficit in the 2025 Appropriation Act. The approvals followed consideration of the report by the Committee on Aids, Loans, and Debt Management.
Tinubu, in his letter to the National Assembly, explained that the borrowings are in line with sections 21(1) and 27(1) of the Debt Management Office Act, 2003. He said funds would be raised through eurobonds, loan syndications, or bridge financing, depending on market conditions.
On the sukuk issuance, the president said it would “diversify Nigeria’s investor base and deepen the FGN securities market,” adding that 25 percent of proceeds would repay high-cost debt while the balance would fund critical infrastructure projects.