JUST IN: Reps Approve Tinubu’s $2.35bn Loan, $500m Sovereign Sukuk
Lawmakers back borrowing plan to fund 2025 budget deficit, boost infrastructure development
The House of Representatives has approved President Bola Ahmed Tinubu’s request to borrow $2.35 billion to finance part of the 2025 budget deficit.
The approval was granted during Wednesday’s plenary following the consideration and adoption of the report by the House Committee on Aids, Loans, and Debt Management.
In addition, the lawmakers endorsed the President’s plan to issue a $500 million debut Sovereign Sukuk in the International Capital Market (ICM).
According to the committee’s report, proceeds from the borrowings will be used to fund critical infrastructure projects, stimulate economic growth, and diversify Nigeria’s financing sources.
The legislative approval is part of the Tinubu administration’s fiscal strategy to bridge the country’s budget financing gap and sustain ongoing developmental programmes across key sectors such as transportation, power, health, and education.
Rising Debt Concerns
Nigeria’s public debt has continued to attract attention amid growing reliance on external and domestic borrowing.
Data from the Debt Management Office (DMO) show that the country’s total public debt stock stood at ₦121.67 trillion as of June 2025, up from ₦97.34 trillion recorded in December 2024.
Critics have expressed concern over the pace of borrowing, warning that future generations could be burdened with unsustainable debt levels. However, government officials maintain that the loans are strategic and concessionary, focused on productive investments capable of boosting revenue generation and long-term growth.
President Tinubu had, in his 2025 budget presentation, emphasized the need for a balanced fiscal approach, combining revenue mobilization with responsible borrowing.
The government is also exploring alternative funding options such as public-private partnerships (PPPs) and sovereign instruments to reduce overdependence on traditional loans.