Olushola Omogbehin
The House of Representatives approved President Bola Tinubu’s request to implement a new external borrowing plan totaling N1.84 trillion (approximately $1.23 billion) as provided in the to help finance the national budget deficit.
This followed the consideration and adoption of the report presented by the House Committee on Aids, Loans and Debt Management that was chaired by Hon. Abubakar Hassan Nalaraba, during plenary on Wednesday.
Going by the committee’s recommendations, the loan will partly finance the ₦9.27 trillion budget deficit contained in the 2025 fiscal plan.
The House also approved the refinancing of a maturing Eurobond valued at $1.12 billion (7.625% USD1.118bn due November 2025) to reduce repayment pressure and stabilize Nigeria’s external debt position.
As well, approval was granted for the federal government to access $2.35 billion through multiple international financing options such as Eurobond issuance, loan syndications, bridge financing facilities, and other forms of external borrowing from reputable global financial institutions.
The lawmakers gave the green light for the issuance of a $500 million sovereign sukuk in the international capital market to fund key infrastructure projects and diversify the nation’s financing sources.
From 2017, Nigeria has generated over ₦1.39 trillion through domestic sukuk issuances to finance major road and infrastructure projects, and this external sukuk is expected to complement those efforts.
